Cara Therapeutics Stock Jumps 10% After Announcing 1-for-3 Reverse Stock Split: Retail Sentiment Soars
Synopsis
On Tuesday evening, every three issued and outstanding shares of CARA’s common stock will automatically be combined into one, effectively reducing the number of issued and outstanding shares of the company's common stock from about 4.6 million to 1.5 million.
Shares of Cara Therapeutics, Inc. (CARA) traded 10% higher on Monday afternoon after the company announced that its board of directors has approved a 1-for-3 reverse stock split of its outstanding shares of common stock.
Cara’s common stock is expected to begin trading on a reverse stock split adjusted basis at the opening bell on Wednesday.
The company’s common stock will trade under the new name “Tvardi Therapeutics, Inc.” and under the new symbol “TVRD” upon the closing of its merger with privately held, clinical-stage, biopharmaceutical company Tvardi Therapeutics, Inc, the company said.
The two companies announced a merger in December. As per the agreement, Cara Therapeutics stockholders are expected to own about 17% of the combined company, and pre-merger Tvardi Therapeutics investors are expected to own approximately 83% of the combined company.
On Tuesday evening, every three issued and outstanding shares of Cara’s common stock will automatically be combined into one, effectively reducing the number of issued and outstanding shares of the company's common stock from about 4.6 million to 1.5 million.
The company said that fractional shares will not be issued as part of the reverse stock split; instead, entitled shareholders will receive a cash payment.
Cara said that after the merger closes, the combined company's total outstanding common stock is expected to be approximately 9.4 million shares.
On Stocktwits, retail sentiment around Cara jumped from ‘neutral’ to ‘extremely bullish’ over the past 24 hours while message volume rose from ‘extremely low’ to ‘extremely high’ levels.
CARA stock is up by about 1% year-to-date but down by about 37% over the past 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.