Astra, a pharmaceutical company listed on the NASDAQ stock exchange, has unveiled a plan to avoid delisting after falling below the minimum stock price requirement.
The company’s stock price had dropped below the $1 minimum for 30 consecutive trading days, which put it at risk of being delisted from the NASDAQ. However, Astra’s management has taken steps to rectify the situation.
Astra’s plan involves a reverse stock split, which will reduce the number of outstanding shares and increase the stock price. The company has proposed a 1-for-10 reverse stock split, which means that shareholders will receive one new share for every ten old shares they own. This will increase the share price tenfold, which should help the company regain compliance with NASDAQ’s minimum bid price requirement.
The reverse stock split is subject to shareholder approval, and Astra has scheduled a vote for next month. If approved, the reverse stock split will take effect shortly thereafter.
Astra’s management has expressed confidence in the plan, stating that it will enable the company to maintain its listing on the NASDAQ and continue to access capital markets. They have also emphasized that the plan does not reflect any negative views on the company’s business or prospects.
In conclusion, Astra’s plan to avoid delisting from the NASDAQ is a proactive step that should help the company maintain its access to capital markets. The reverse stock split, if approved, will increase the stock price and enable Astra to regain compliance with NASDAQ’s minimum bid price requirement. This is good news for shareholders, who will retain their ownership stake in the company while also benefiting from a higher stock price. (Source: CNBC)
