Tenax Therapeutics Inc (NASDAQ:TENX) happens to be a specialty pharmaceutical that pays quite a huge deal of attention in the provision of a series of products targeted at addressing a wide range of unmet medical needs. Over the years it has been leveraging on technological advancements to provide top end services and products to patients. It has today moved ahead to make the announcement regarding the reverse stock split of shares and that was specifically at the ratio of 1-for-20.
An official working with the company stated, “Beginning with the opening of trading on Monday, February 26, 2018, the Company’s common stock will continue to trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol ‘TENX,’ but will trade on a split-adjusted basis under a new CUSIP number, 88032L 209.”
It was during the Special Meeting of Stockholders that was held way back in February 15, 2018 that stockholders proceeded to approve the reverse stock split. It was after that the Company’s Board of Directors proceeded to approve the reverse stock split ratio.
Later on in September the Company obtained a notice from Nasdaq in which case it was granted an additional 180 calendar days within which it would regain compliance in line with the minimum $1.00 bid price per share requirement so that it wouldn’t be struck out of the Nasdaq Capital Market.
A person well conversant with the matter outlined that to regain compliance the common stock of the Company needed to was required to have at least a minimum bid price per share of about $1.00 over a duration of about 10 consecutive business days.
Fundamentally, the reverse stock split is meant to offer a boost to the market price per share thus ensuring that the share price is definitely high enough to satisfy the $1.00 minimum bid price that Nasdaq sets up as the minimum requirement.
However, it is worth noting that there doesn’t exist any form of assurance that the reverse stock split might culminate into the much desired effect. Tenax Therapeutics is looking forward to achieve much more this year.