The XORTX Therapeutics Inc (NASDAQ: XRTX) stock price soared 97.05% despite the lack of significant news releases from the clinical-stage biopharmaceutical company. The last significant news from the company was regarding the reverse stock split to regain compliance with the Nasdaq’s listing requirements.
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The lack of announcements from the company indicates that the recent rally in the XRTX share price could have been driven by momentum trading from day traders looking to get a quick profit from the company. XRTX shares had risen by 34.23% yesterday ahead of today’s rally.
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The company also recently announced that Institutional Shareholder Services (ISS) has recommended that its shareholders vote for the reverse stock split at the general meeting scheduled for October 25, 2023, at 10:00 a.m. Calagary Canada time. The meeting will be held at 3710 – 33rd Avenue NW, Calgary, Alberta, Canada T2L 2M1.
XORTX Therapeutics’s CEO clarified that even though the company will get shareholder approval for a 1-for-9 reverse stock split, it is not guaranteed to move ahead with the same. The company might hold off from a reverse stock split if its shares trade above $1.00 for ten consecutive business days.
Trading above $1.00 for ten consecutive days would allow the company to regain compliance with the Nasdaq’s listing rules and eliminate the need for a reverse stock split. The current rally in XRTX stock has not reached the $1.00, but it may reach this crucial level.
XRTX stock price still has a ways to go before it can breach the crucial $1.00 level, and it remains to be seen whether the current rally will be sufficient to push it past this critical level.
Dr Allen Davidoff, CEO of XORTX, stated: “Management and the Board of Directors wish to clear up any ambiguities arising from the Information Circular and recent press release regarding the upcoming special meeting of shareholders that seeks shareholder approval to consolidate the Company’s shares. For clarification, the special meeting of shareholders seeks approval to consolidate the Company’s shares in a range from 0 to 9:1, which is one option available to the Company to maintain good standing and remain in compliance with NASDAQ’s $1 minimum bid price requirement. Approval to consolidate does not mean this is an irreversible process even after shareholder approval, as Management and the Board of Directors can decide not to proceed with the consolidation.”
XORTX Therapeutics (XRTX) stock price.
The XORTX Therapeutics (XRTX) stock price soared 97.05% to trade at $0.6877, from Thursday’s closing price of $0.3490.
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