Shares of commercial-stage pharmaceuticals company Jaguar Health, Inc. (JAGX) tanked 13.8% in Friday’s extended trade to close at $1 after the company announced a 1-for-3 reverse stock split.
The reverse stock split of the company’s issued and outstanding shares will come into effect from September 8. Following this, the company’s shares will be trading on a split-adjusted basis.
Notably, post the split, every three shares will be reclassified into one share. No fractional shares will be issued as a result of the reverse stock split and shareholders entitled to fractional shares will receive a cash payment in lieu thereof.
The President of Jaguar Health, Lisa Conte, said, “We are grateful to our shareholders for voting to approve the proposal for a reverse stock split, and — in support of our strategy of focusing on long-term investors — we have decided to implement a reverse stock split at this time to get Jaguar’s quoted stock price more in line with typical institutional investing requirements.” (See Jaguar Health stock chart on TipRanks)
The stock has a Moderate Buy consensus rating based on 1 Buy. Two months ago, Cantor Fitzgerald analyst Louise Chen initiated a Buy rating on the stock with a price target of $5, which implies upside potential of 331% from current levels.
The analyst believes that Jaguar Health’s Mytesi product pipeline can be beneficial for the company as it has multiple uses in gastrointestinal disorders of humans and animals. Shares have gained 241.2% over the past year.
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