PainReform Stock Is Soaring Tuesday: What's Going On?

PainReform Ltd. PRFX shares are ripping higher Tuesday following the company’s announcement of a 1-for-4 reverse stock split. Here’s what you need to know.

What To Know: The reverse stock split, announced in a filing with the U.S. Securities and Exchange Commission, will take effect after the market closes on Wednesday. The company's shares will begin trading on a split-adjusted basis on Thursday.

Under the terms of the split, every four ordinary shares will be consolidated into one. Following the split, the company will have approximately 590,616 shares issued and outstanding.

No fractional shares will be issued and any fractional amounts will be rounded up to the nearest whole share. Moreover, adjustments will be made to the exercise price and the number of shares tied to outstanding options and warrants.

It’s worth noting that the company received a letter from the Nasdaq earlier this month noting that it was not in compliance with Nasdaq listing requirements. The company has until Dec. 19 to regain compliance.

PainReform shares are trending across various social platforms on Tuesday as the stock trades on abnormally high volume. PainReform’s average session volume is about 491,000, according to Benzinga Pro. Tuesday’s trading volume was around 164 million at the time of writing.

PRFX Price Action: PainReform shares were up 157.8% at $1.39 at the time of writing, according to Benzinga Pro.

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