The biotech sector has attracted a lot of attention from investors over the course of the past years and remains one of the more sought-after sectors. One of the biotech stocks which came into focus in a big way among investors on Thursday was of the clinical-stage biotech firm Provectus Biopharmaceuticals Inc (OTCMKTS:PVCT).
On Thursday, PVCT stock surged 15% to $0.0609 with more than 280K shares, compared to its average volume of 197K shares. The stock moved within a range of $0.0512 – 0.0609 after opening trade at $0.0550.
About The Company
Provectus Biopharmaceuticals is involved in developing immunotherapies for a wide range of medical conditions. The immunotherapies that are developed are developed on the back of halogenated xanthenes (HNx), which are a form of small molecules.
The lead molecule that is used by Provectus Biopharmaceuticals is RBS, however, it is also necessary to note that another molecule has also been developed by the company. Yesterday, the stock came into focus among investors following a key development and had clocked gains of as much as 15% for the day.
Provectus Biopharmaceuticals Announces Stockholder Approval to Undertake Reverse Split of Outstanding Equities and Reduce Number of Authorized Equities by Same Ratio
The company announced yesterday that its shareholders had approved a proposal from the Provectus Biopharmaceuticals board of directors for a reverse stock split as well as an authorized reduction of the number of shares.
The Annual Meeting of Shareholders for the year 2022 was held earlier this week on June 22 in Knoxville, Tennessee. Other than the above-mentioned developments, the shareholders also provided their approval with regards to the board’s proposals for the elections of directors, compensation of the executive officers, and the confirmation of the independent accounting firm which would service Provectus.
The approval of the major proposals from the board of directors was a significant development for the company and hence, it was perhaps not a surprise that the stock soared on Thursday. In this context, it is perhaps also necessary to point out that a reduction in the number of shares in a company is generally seen as a positive by shareholders.
Since the reduction in the number of shares is going to make it a rarer commodity, it may help with the price appreciation and that is often the reason behind the optimism. At this point, it is going to be interesting to see if the Provectus Biopharmaceuticals stock can hold on to its momentum and end the week strongly.
PVCT stock is trading above the 20-Day and 50-Day Moving averages of $0.0560 and $0.0573 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.0604.