New Jersey-based biotechnology company ContraVir Pharmaceuticals (NASDAQ:CTRV) announced on Thursday that it will be having a reverse split of its common stock.
A reverse stock split is meant to help a company to reduce “the total number of a company’s outstanding shares and simultaneously increases the price per share,” according to Investopedia.
The company, which focuses on developing therapeutic drugs to help with the treatment of the hepatitis B virus (HBV), will have its shares be offered at a ratio of 1 for 8, starting May 29, 2018.
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ContraVir Pharmaceuticals has said that the decision is meant to “bring the company into compliance with the minimum bid price requirement for maintaining its listing on the Nasdaq Capital Market.”
According to the company, the reverse stock split should reduce the number of outstanding shares from nearly 85.5 million to 10.7 million.
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The decision was approved by the Board of Director in January 2018 and was supported by a majority of shareholders in March 2018.
Stockholder shares and interest in the company will not be affected by the reverse stock split and “common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders.”
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ContraVir is currently working on two different treatments for the hepatitis B virus (HBV), TXL and CRV431.
TXL is meant to reduce side effects of HBV by “reducing concentrations of tenofovir outside the liver,” while CRV431 is meant to be “a next-generation cyclophilin inhibitor with a novel structure” which can reduce symptoms of HBV.
Shares of ContraVir fell by 87.59% on Friday, since the announcement was made. The company closed on Friday at a share value of approximately $0.25 USD after reaching a high of $0.29 and a low of $0.24.
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