Affimed (NASDAQ:AFMD) stock is on the move Friday as investors prepare for the clinical-stage biopharmaceutical company’s shares to undergo a reverse split later today.
AFMD stock will go through a 1-for-10 reverse stock split after markets close today. That will result in the company’s shares starting to trade on a split-adjusted basis when markets open on Monday.
Shareholders approved of this reverse stock split during the company’s on June 21, 2023. It’s also worth mentioning that this split won’t allow for fractional shares. Any investor that would end up with them will get a cash payment instead.
What’s Behind the Reverse AFMD Stock Split
Affimed notes that the reverse stock split is designed to increase the price of the company’s shares. It’s undertaking this effort to boost its price below the minimum required to remain on the Nasdaq Exchange.
Pre-split shares of AFMD are trading for 58 cents, as compared to the minimum bid requirement of $1. If the company’s stock remains below that minimum for too long, it will be in danger of delisting from the exchange.
AFMD stock was initially down as much as 80% during pre-market trading. However, they have since recovered and are up 3% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
