PharmaCyte Biotech (NASDAQ:PMCB), a company that produces cellular therapies for cancer and diabetes patients, is moving fast and thus a potential buy for the investors. Recently in July the company has announced of enacting a 1-for-1,500 reverse stock split for its common stock which gained effectiveness on the OTCQB Exchange at the opening of the market on July 12.
This resulted in the decline the number of outstanding common stock shares from around 2.4 billion to approximately 1.6 million. The company traded at 8.26$ on the same day however, there was a steep decline in the value of shares after that coming down to $3 recently and change. In addition to this what is alarming is that the company had a trailing 12-month earnings per share of -$2.45.
Looking at he harder frame of PharmaCyte, an investor may wonder as to what compelled the company for a reverse share spilt to which the CEO of the company Mr. Kenneth L. Waggoner, “[W]e believe this change will make it easier for investors to trade in our stock and is a necessary step before the Company’s common stock can be listed on a national stock exchange like Nasdaq, which is our expectation.”
The company did achieve the milestone and managed to escape the over-the-trade counter and upgrade to the Nasdaq Exchange which would subsequently provide the company with manifold benefits. Elated with the upliftment, Mr. Waggoner stated, “We believe being a Nasdaq-listed company will help elevate our public profile, expand our shareholder base, improve liquidity and enhance shareholder value.”Thus, PharmaCyte could certainly be a game changer for the investors.
