Shares of NovaBay Pharmaceuticals, Inc. (NYSEMKT:NBY) fell considerably in pre-market trading this morning, before skyrocking after the market opened. This was in response to an official filing announcing a reverse split of common stock.
For each 25 shares of NovaBay Pharmaceuticals, Inc. (NYSEMKT:NBY) common stock, shareholders now will only own one share. While this is a huge reduction in shares (from over 87 million to just 3.485 million), the percentage of ownership for shareholders did not change.
At first shareholders didn’t know exactly how to react, as the stock was trading down 35% prior to the market opening. Apparently the news changed investors’ minds as it is now up significantly. How’s that for a post-split pop?
The stock is up 29.16% or $0.74 following the news, hitting $3.3 per share. About 325,200 shares traded hands or up 1901.85% from the average. NBY has declined 84.13% since May 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 81.86%.
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company. The company has a market cap of $9.48 million. The Firm operates through four divisions: dermatology, ophthalmology, urology and wound care. It currently has negative earnings. The dermatology segment includes NovaBay’s business around the dermatology area, including the collaboration with Galderma and their impetigo clinical trial.