- At this very moment it depends upon which ticker you look at
- Aditxt is either up 6,750%, or 35%
- Which is true of ADTX depends upon real or nominal prices
Aditxt (NASDAQ: ADTX) stock is listed, by some tickers, as being up 35% this morning. Which, following a 37% price rise on Friday – because such rises are cumulative – means a near 100% appreciation in ADTX in only two trading days. Which is pretty good really. Other tickers are showing that Aditxt stock is in fact up 6,750% this morning – which is even better of course. However, we do need to know the difference between a real price change and a purely nominal one. As with inflation more generally, it’s the real price change that matters, not the nominal one. Matters to our wealth that is for obviously there must be some purpose to that nominal change otherwise why would people bother?
Aditxt itself is a biopharma research company. The specific area of interest and development is with the immune system and therapies and management systems for organ transplants, skin grafts and so on – with a further interest in autoimmune system problems. ADTX stock is down 89% over the past year, it came to market in 2020 at a shade over $5. Friday’s opening price of $0.14 was thus a 97% decline or so from that IPO price and even more from the peak of just shy of $8.
It’s that very stock price decline which causes the problem. Of course, any decline like that is a problem but if a NASDAQ or NYSE quoted stock trades below $1 – the minimum offer price as it’s known – then that creates a significant problem. For it will, if unresolved, mean the loss of the listing itself. That means relegation down to the OTC markets with their much more limited liquidity and capital raising opportunities.
As you can see NASDAQ is reporting the price as being up at $9.59. But that’s not really and wholly true – although it will be. As far as it’s possible to find out the reverse stock split is 50 for 1 and it takes effect today. So, the premarket price is still in that tens of cents range, when the market opens it will be just shy of that $10 mark. For this is how such listing problems are solved – just change the number of shares in issue to get the nominal price up over that minimum offer price of $1.
As to why this must be done that’s just fashion. The US markets – unlike the London ones – think that penny stocks are where charlatans and rogues lie in wait to manipulate investors. So, if something is a penny stock it cannot be on the main exchanges. Thus these reverse stock splits or consolidations.
All of which now allows us to see the real price change here. Again, details are scanty at present but the reverse split here seem to be a 50 for 1. Therefore the nominal price should rise by 5,000%. But we’ve that ADTX 35% price rise, to add to the 37% one on Friday, meaning that we’ve a real stock appreciation as well. The reason for that is presumably that now the NASDAQ listig is safe, retaining that liquidity and capital raising ability. Note that the price is likely to continue changing during the day.