Why Seelos Therapeutics Shares Are Diving Today

Seelos Therapeutics, Inc. SEEL shares are trading lower after the company approved a 1-for-30 reverse stock split of its outstanding shares of common stock.

The reverse stock split will be effective as of 12:01 a.m. Eastern Time on Tuesday, November 28, 2023.

The company aims to meet Nasdaq Capital Market's minimum bid price requirement of $1.00 per share for ongoing listing through the reverse stock split.

At the effective time of the reverse split, every 30 issued and outstanding shares of the company's common stock will be converted automatically into one share.

The reverse stock split will reduce the number of authorized shares of the company's common stock from 480 million shares to 16 million shares.

The reverse stock split will reduce the number of issued and outstanding shares of the company's common stock from approximately 167.7 million to approximately 5.6 million.

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Price Action: SEEL shares are trading lower by 20.5% to $0.14 on the last check Friday.