In a strategic move to restructure its common stock, clinical stage biopharmaceutical company PaxMedica announced today the successful execution of a 1-for-17 reverse stock split. The split, which took effect at 8:03 a.m. Eastern Time on October 30, 2023, will initiate trading on a split-adjusted basis with the opening of the market on October 31, 2023. The company’s common stock will continue to be traded under the existing symbol “PXMD,” albeit with a new CUSIP number – 70424C 203. Following the announcement, the stock of PaxMedica is experiencing a decline today.
At the time of this publication, PaxMedica Inc stock (PXMD) has witnessed a decline.
PaxMedica Inc
Current Price: $0.15
Change : -0.05
Change (%): (-24.47%)
Volume: 2.3M
Source: Tomorrow Events Market Data
As a result of the reverse stock split, every 17 pre-split shares of common stock have been automatically amalgamated and transformed into one issued and outstanding share of common stock. It is noteworthy that no fractional shares were allotted to stockholders in connection with this process. To accommodate, holders of record who would have been entitled to fractional shares have instead received a number of shares rounded up to the nearest whole share.
The Company’s transfer agent, Computershare Trust Corporation, N.A., is set to furnish stockholders of record with pertinent information concerning their share ownership subsequent to the reverse stock split.
This development follows closely on the heels of PaxMedica’s recent milestone achievement. On October 26, the company declared the successful conclusion of a type-B meeting with the United States Food and Drug Administration (FDA). The immediate and profound impact of this announcement was palpable, as PaxMedica’s stock value experienced an extraordinary surge, catapulting by an impressive 90%.
However, the recent past has witnessed a decline in PaxMedica’s stock performance. As of the latest figures, the company’s performance over various timeframes stands as follows:
– 5 Day: -27.98%
– 1 Month: -52.80%
– 3 Month: -75.73%
– Year-to-Date (YTD): -92.44%
– 1 Year: -92.70%
These numbers reflect the intricate nature of the biopharmaceutical sector, marked by its sensitivity to regulatory developments and market forces. The strategic maneuver of PaxMedica with the reverse stock split underscores its commitment to adapt and thrive in this dynamic landscape. Investors and industry analysts alike will be keenly observing the aftermath of this restructuring.
