Key points:
- The Allena Pharma stock price soared 68.14% despite no news.
- The company will hold a meeting to approve a reverse stock split.
- So, what comes next for Allena stock? Read on to find out.
Despite the lack of news announcements, the Allena Pharmaceuticals Inc (NASDAQ: ALNA) stock price soared 68.14% today. However, investors familiar with the company will remember that it had postponed the special meeting date to approve a reverse stock split from July 12, 2022, to August 4, 2022.
The meeting will be held at 9:00 am local via a live webcast. Shareholders participating in the meeting will have to approve a significant reverse stock split to bring the company’s share price above the minimum threshold of $1 to remain listed on the Nasdaq.
Also read: The Best Biotech Stocks Under $5 To Buy Right Now.
The biopharmaceutical company is in danger of being delisted from the Nasdq exchange after its share price fell below $1 in September 2021. The Nasdaq usually gives companies whose stock price falls below $1 six months to bring their share price back above $1.
However, a company can request a three-month deadline extension to conduct a reverse stock split and increase its share price. The firm raised $2.8 million via a direct offering in April to meet a significant funding gap, and the upcoming reverse stock split could make its stock attractive to a larger pool of investors.
Allena Pharma announced that it had completed enrollment of cohorts A and B of its ALLN-346 Phase 2a Study 202 in gout patients with stage 2 and stage 3 chronic kidney disease, CKD, triggering a significant rally in its stock price.
The company’s stock price has fallen 81.68% in 2022, with the decline accelerating since March after announcing the discontinuation of the clinical development of its lead drug candidate, reloxaliase, which was meant to treat patients with enteric hyperoxaluria.
Therefore, investors should watch out for the outcome of today’s meeting, which will result in a higher stock price for ALNA shareholders. Investors appear eager to buy ALNA stock since over 26 million shares had changed hands at writing.
*This is not investment advice. Always do your due diligence before making investment decisions.
Allena Pharma (ALNA) stock price.
Allena Pharmaceuticals’ stock price surged 68.14% to trade at $0.1900, rising from Wednesday’s closing price of $0.1130.