A reason for the sudden drop
$Unicycive Therapeutics(UNCY.US$ This big drop is partially due to a reverse stock split that is coming soon. The stock price has closed below $1.00 since May 23rd. Despite the good news on the drug trials, Unicycive will need to raise the stock price in order to remain listed on the NasdaqCM…and this means a reverse stock split. Investors on trading platforms like Morgan Stanley, E*Trade, and TD Ameritrade are probably dumping their shares to avoid a $38.00 reorganization fee. They will probably re-buy after the reverse split.
And if the company is going to do a reverse stock-split, they will probably aim for a resulting stock price that is over $5.00, with a safety buffer since reverse splits often trigger a further price drop. So we are probaly looking at a 20-to-1 or 30-to-1 reverse split.
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