Why Are InVivo Therapeutics Shares Trading Lower During Premarket Monday?

InVivo Therapeutics Holdings Corp NVIV has announced a 1-for-25 reverse stock split of its common stock and a proportionate reduction in its authorized common stock.
InVivo Therapeutics is a research and clinical-stage biomaterials and biotechnology company focusing on treating spinal cord injuries.
The company anticipates the reverse stock split will become effective and start trading on a post-split basis on April 27.
Every 25 shares of InVivo Therapeutics common stock will be combined into 1 share.
In connection with the reverse stock split, the authorized shares will be reduced from 50 million shares to 2 million shares.
The reverse stock split will reduce the company's issued and outstanding shares from approximately 34.3 million to about 1.4 million.
The implementation of the reverse stock split is intended to increase the per-share trading price of the company's common stock to fulfill the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Price Action: NVIV shares are down 18.6% at $0.25 during the premarket session on the last check Monday.