Monday, April 06, 2020 10:02:13 AM
1. Increase their share price to avoid being delisted from an exchange. The exchange GNPX is trading on, NASDAQ CM (Capital Markets), rule is $3/share. A few months ago GNPX was in violation of this rule, but corrected (Up to $7/share) and was released from the warning).
2. Increase their share price to avoid being removed from a stock index
3. Increase their share price to avoid the “low-quality” stigma that is associated with penny stocks. Some investors and institutions have a policy to not buy stocks under $5/share. To attract these investors a company may reverse split. These splits are generally in the 1-2 to 1-5 range and can be quite successful. However, a RS by a company that has billions of shares and doing a RS of 1-1000 to 1-5000 is rarely successful in attracting these investors and generally do the RS an attempt to save a dying company. The higher price makes it easier for the officers to sell their shares, so their thinking usually goes.
"The Cabot Wealth Network", a financial research firm that specializes in covering companies in trouble, says: "There has been a flurry of reverse stock splits of late. Are they good for investors? Traditionally no. But there are a few exceptions." Rather than attracting more investors, the RS actually reduces the number of investors and only when well planned well ahead of the decision, will rarely attract the quality investors being aimed at.
One of Chicken Little's Short Seller's favorite warnings, after "The Sky is Falling!" is "This stock is planning a Reverse Split". Since the RS has been a killer of retail investors, some inexperienced RI's will run for the hills and sell-off at the very mention of a RS, and Chicken Little is playing on these fears.
It appears to me that there is no reason for GNPX to even think about doing a reverse split. There is no pressure from regulators to increase its price, and no need to attract investors, whales or institutions. The company, as well as its investors, know that coming news will explode the price well above where it is at present. And, it has arranged for sufficient funds to complete its research efforts.
As for one "being long" and truly believing that a Reverse Split was a sure thing, something is wrong with this thinking. Even if such a RS is positive and less than 1-5, and I truly believed it was going to happen, I would sell and await the action, then buy back in as the new price settles down (as they usually do initially).
Recent GNPX News
- Genprex Announces Formation of Mesothelioma Clinical Advisory Board • PR Newswire (US) • 09/19/2024 01:29:00 PM
- Genprex Collaborators to Present Positive Preclinical Data on the Use of Reqorsa® Gene Therapy at the 2024 EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics • PR Newswire (US) • 09/09/2024 01:29:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/04/2024 01:30:39 PM
- Genprex Announces Plans to Launch Separate Company to Focus on the Development of Gene Therapy to Treat Type-1 and Type-2 Diabetes • PR Newswire (US) • 09/04/2024 01:29:00 PM
- Genprex to Present and Participate at Upcoming September Investor and Industry Conferences • PR Newswire (US) • 09/03/2024 12:15:00 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 08/16/2024 08:18:55 PM
- Genprex Releases New Video Featuring Chief Medical Officer Discussing Positive Patient Outcomes in Two Lung Cancer Clinical Trials • PR Newswire (US) • 08/15/2024 01:30:00 PM
- Genprex Announces Positive Clinical Study Updates from Acclaim-1 and Acclaim-3 Phase 1/2 Clinical Trials in Lung Cancer • PR Newswire (US) • 08/14/2024 01:25:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/13/2024 12:38:12 PM
- Genprex Granted Patent in Singapore for Reqorsa® Gene Therapy with PD-1 Antibodies to Treat Cancers • PR Newswire (US) • 08/13/2024 12:31:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/09/2024 08:31:26 PM
- Genprex to Present at the August Sidoti Microcap Conference • PR Newswire (US) • 08/08/2024 12:30:00 PM
- Genprex Issues Stockholder Letter and Provides 2024 Corporate Update • PR Newswire (US) • 06/27/2024 12:31:00 PM
- Genprex to Present at the 2024 BIO International Convention • PR Newswire (US) • 05/30/2024 12:31:00 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 05/20/2024 08:35:51 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 08:15:54 PM
- Genprex Doses First Patient in Acclaim-3 Clinical Study of Reqorsa® Immunogene Therapy in Combination with Tecentriq® to Treat Small Cell Lung Cancer • PR Newswire (US) • 05/14/2024 12:31:00 PM
- Genprex Announces the Appointment of Jose A. Moreno Toscano as Chairman of the Board of Directors • PR Newswire (US) • 05/13/2024 12:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 12:11:07 PM
- Genprex Announces the Passing of its Co-Founder and Chief Executive Officer, Rodney Varner • PR Newswire (US) • 05/08/2024 10:08:00 PM
- Genprex to Present and Participate at Upcoming May Investor and Industry Conferences • PR Newswire (US) • 05/01/2024 12:31:00 PM
- Genprex Collaborators Report Positive Preclinical Data on the Use of Reqorsa® and on NPRL2 Gene Therapy Utilizing Non-Viral Oncoprex® Delivery System for the Treatment of Lung Cancers at the 2024 AACR Annual Meeting • PR Newswire (US) • 04/09/2024 12:31:00 PM
- Genprex Expands Clinical Trial Sites for Acclaim-3 Clinical Study of Reqorsa® Therapy in Combination with Tecentriq® to Treat Small Cell Lung Cancer • PR Newswire (US) • 04/03/2024 12:31:00 PM
- Genprex Collaborators Publish Positive Preclinical Data with NPRL2 Gene Therapy Utilizing Oncoprex® Delivery System • PR Newswire (US) • 04/02/2024 12:31:00 PM
- Genprex Announces Closing of $6.5 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules • PR Newswire (US) • 03/22/2024 08:10:00 PM
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