Evofem Biosciences Inc (OTCMKTS:EVFM) Stock On Watchlist After Reverse Stock Split

News about a reverse stock split can often elicit mixed reactions from investors and hence, it is going to be interesting to see how investors react to the announcement from Evofem Biosciences Inc (OTCMKTS:EVFM) yesterday. The company announced on Wednesday that it was going to have a 1 for 125 reverse stock split of its common stock.

Trading Data

On Wednesday, EVFM stock lost 3.14% to $0.0154 with more than 3.41 million shares traded, compared to volume of 4.17 million shares. The stock moved within a range of $0.0150 – 0.0178 after opening trading at $0.0155.

Evofem Biosciences Announces 1-for-125 Reverse Stock Split

The move had been approved by the company’s shareholders at the special meeting of stock holders that had taken place on March 15, 2023. The company announced yesterday that on May 18, 2023 the stock would begin trading under a new CUSIP number on the OTC Venture Market on a split adjusted basis. The ticker symbol of the stock is going to be EVFMD.

However, after 20 business days, the ticker symbol is going to change to EVFM. The company decided to go for the reverse stock split so as to ensure that it had the adequate number of authorized shares of its common stock to care of the number of shares that were underlying its financial instruments on a fully diluted basis. Following the reverse stock split, each block of 125 shares owned by an investor would be turned into 1 share.