- The NRBO stock jumped 63 per cent in pre-market hours on Thursday.
- NeuroBo Pharmaceuticals had recently enacted a reverse stock split.
- The stock added about 125 per cent in the last 30 days.
The stock of the clinical-stage biotech firm, NeuroBo Pharmaceuticals, Inc. (NASDAQ: NRBO), had seemingly gained attention from market participants, as evident by the increase in its pre-market trading price.
The price of the NRBO stock was up more than 63 per cent in the pre-market hours on September 15, after falling more than 43 per cent in the previous session.
So what could be the probable reasons that might have triggered the rally of NRBO stock on Thursday? Let's find out with Kalkine Media®:
Why is it rising?
Although there is no apparent news for its rally in the pre-market hours on Thursday, it is anticipated that its recent announcement of reversed stock split might have helped in its gains.
The clinical-stage healthcare firm announced on September 12, that it is going for a 1-for-30 reverse split of its common stock. Notably, it became effective the same day, after the market close.
On its split-adjusted basis, the stock of the biotech firm began to trade on the Nasdaq Capital Market on Wednesday.
Back on June 9 this year, Neurobo Pharmaceuticals' shareholders nodded to enact a reverse split of the company's share in any range between 1-for-5 and 1-for-35 ratio, depending on the approval from the board of directors. However, the time gap between the official announcement and the split was only a few hours.
As per the announcement, the Massachusetts-based company planned for the reverse split to adhere to the listing conditions of the Nasdaq Stock Market. Notably, neither Nasdaq nor NYSE lists a stock that trades below US$ 1 for an extended period.
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The trading price of the NRBO stock was US$ 27.55 at 8:09 am ET on September 15, up 63.40 per cent from its previous closing price of US$ 16.86. Meanwhile, it declined 43.61 per cent at its close on Wednesday.
At its current trading price, the stock of the biotechnology company added about 125 per cent in the last 30 days, while losing about 31 per cent on a YTD basis.
Talking about its financials, the operating expenses of the Boston, Massachusetts-based company was US$ 15.29 million in fiscal 2021, down from US$ 29.71 million in the prior year. Its net loss improved to US$ 15.28 million for the year ended on December 31, 2021, against a loss of US$ 29.67 million in FY20.