It is going to be interesting to see if the American Virtual Cloud Technologies Inc (NASDAQ:AVCT) stock can actually make a recovery this morning after the stock plunged by as much as 30% in premarket trading period.
On Thursday, AVCT stock soared 6.80% to $0.2983 with more than 103.21 million shares, compared to its average volume of 62.78 million shares. The stock moved within a range of $0.2626 – 0.3019 after opening trade at $0.2703.
AVCT Announces Intent to Effect Reverse Stock Split
The selloff was triggered by the announcement from the company yesterday with regards to the fact that it was looking to have a reverse stock split in the 1 to 15 ratio of its outstanding and issued common stock shares. The reverse stock split would go into effect on September 30, 2022 and the stock would start trading on a split adjusted form from October 3, 2022.
It should be noted that the stock is going to continue to trade on NASDAQ under the ticker symbol AVCT. However, it will have a new CUSIP number following the reverse split. In the annual meeting of shareholders that was held earlier on this year on May 24, 2022, the shareholders approved of three different resolutions with regards to the reverse stock split. One was to split the stock in a 1 to 5 ratio, the other one for a 1 to 10 split and the third was with regards to a 1 to 15 split.
AVCT stock is above the 20-Day and 50-Day Moving averages of $0.25 and $0.22 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.74. The company has a total market capitalization of $37 million.