Acorda Therapeutics, Inc. (Nasdaq: ACOR) shares skyrocketed 468.03% to 3.92 in the pre-market session Monday, January 4, 2021, after the Company recently revealed that the previously disclosed 1-for-6 reverse stock split of its outstanding and accepted common stock shares had been completed. At 4:01 p.m., the reverse stock break took place. Eastern Time today, and the Company’s common stock will resume trading on a split-adjusted basis on the free market on January 4, 2021.
Acorda’s stockholders passed a resolution authorizing a reverse stock split at their Special Meeting of Stockholders held on July 31, 2020. To remain on The Nasdaq Global Select Market, the Company needs to comply with the $1.00 minimum bid price.
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Every six shares of Acorda’s issued and outstanding common stock were automatically combined and converted into one share of common stock in the reverse stock split. Accordingly, the number of shares of the Company’s authorized common stock was reduced from 370,000,000 to 61,666,666. The reverse stock split resulted in fractional shares rounded up to the next whole number. Reverse stock splits are applied equally to all outstanding shares of the common stock. No stockholder held less common stock upon the reverse stock split than they had done immediately before the reverse stock split because fractional shares were not included in the reverse stock split calculation.
Accorda’s common stock continues to trade on Nasdaq, and the CUSIP number has changed to 00484M601.