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Why Is CASI Pharmaceuticals (CASI) Stock Up 700% Today?

CASI Pharmaceuticals (NASDAQ:CASI) underwent a reverse stock split.
This saw it consolidating 10 shares into one.
It did so to regain compliance with Nasdaq listing rules.

Source: Bukhta Yurii / Shutterstock.com

CASI Pharmaceuticals (NASDA…

  • CASI Pharmaceuticals (NASDAQ:CASI) underwent a reverse stock split.
  • This saw it consolidating 10 shares into one.
  • It did so to regain compliance with Nasdaq listing rules.

Source: Bukhta Yurii / Shutterstock.com

CASI Pharmaceuticals (NASDAQ:CASI) stock rocketed higher in pre-market trading this morning but it’s not due to any positive news from the biopharmaceutical company.

Instead, the rise in price for CASI stock comes from a one-for-10 reverse stock split that went into effect after markets closed on Wednesday. A reverse stock split sees a company consolidating shares of its stock to increase the price.

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A reverse stock split doesn’t directly affect a shareholder’s stake or the company’s market capitalization. However, we often see shares dip on a reverse stock split announcement, as well as after it’s gone into effect. That’s happening today with CASI stock heading lower in normal trading hours today.

So why did CASI Pharmaceuticals go through with a reverse stock split? The company didn’t have much of a choice as it needed to quickly increase the price of its shares. If it didn’t, it couldn’t have maintained the minimum bid price to remain listed on The NASDAQ Capital Market.

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Wei-Wu He, Ph.D., chairman and CEO of CASI Pharmaceuticals, said this about the reverse stock split.

“By implementing a reverse stock split, the Company is better positioned to regain compliance with the NASDAQ listing rules. Maintaining our listing on NASDAQ will provide the Company with greater flexibility with respect to access to the capital markets.”

CASI stock is down 19.3% as of Thursday morning.

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There’s more stock market news to dive into below!

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InvestorPlace has all the latest stock news traders need to know about for Thursday! Among that is what’s happening with shares of Meta Platforms (NASDAQ:FB), Chewy (NYSE:CHWY), and GameStop (NYSE:GME) stock today. You can read that news at the following links!

More Thursday Stock Market News

  • FB Stock Stays in the Spotlight as Meta Platforms Says Goodbye to COO Sheryl Sandberg
  • Why Is Chewy (CHWY) Stock Up 15% Today?
  • GameStop (GME) Stock Climbs Despite Earnings Miss

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.

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The post Why Is CASI Pharmaceuticals (CASI) Stock Up 700% Today? appeared first on InvestorPlace.

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