Following a major new announcement from Peak Pharmaceuticals Inc (OTCMKTS:PKPH) on Tuesday, it could be a good time for investors to take a closer look into the development and make up their minds one way or another about the stock. That company announced yesterday that it was going to go for 1 for 200 reverse stock split of its outstanding common stock.
On Tuesday, PKPH stock lost 81.95% to $0.0298 with 6.63 million shares, compared to its average volume 311.81K shares. The stock moved within a range of $0.0261 – 0.1637 after opening trade at $0.1625.
Peak Pharmaceuticals Announces One-for-Two-Hundred Reverse Stock Split
It should however be noted that the company’s common stock is going to continue to trade in the OTC Pink Market under a new ticket symbol PKPHD and a new CUSIP number. When the market opens this morning, the Peak common stock is going to trade on a reverse split adjusted basis.
Following the reverse split, each block of 200 pre-split common shares in Peak would be combined into one common share of the Peak common stock. The existing shareholders of the company do not need to take any action at all. In this context, it should be noted that after the completion of the reverse stock split the total number of issued and outstanding shares in the company would drop to only 391818 from as many as 78,363,567.
However, it should be noted that Peak would not issue any fractional shares following the reverse split.