Tissue Regenix (LON: TRX) is surprising those looking at the ticker this morning by being up 9,493%. Or, as we should more accurately call this, being down 5%. The difficulty here is that the near 10,000% (yes, that is ten thousand percent) change is a purely nominal change. One that doesn't change the value of the company via its market capitalisation, or that of any individual shareholding. The 5% decline is a real price change though. That's a real loss to those holding the TRX shares.
As to what TRX does it's into wound repair. More specifically, “The Company's patented decellularisation technology ('dCELL®') removes DNA and other cellular material from animal and human soft tissue, leaving an acellular tissue scaffold that is not rejected by the patient's body and can then be used to repair diseased or damaged body structures.” It's a way of helping wounds heal. The problem is that while this is possibly good medicine, and we do like being able to heal wounds, this isn't all that profitable an enterprise:
Tissue Regenix share price from Google
And in more detail, with a shorter time span:
Tissue Regenix share price from Google
What has happened here is as many will suspect. There's been a reverse share split, a consolidation: “At the Record Date, being 6 p.m. today, the 7,035,794,900 Existing Ordinary Shares will be consolidated into 70,357,949 Consolidated Shares.”
It's a one for a hundred consolidation therefore the share price has risen 10,000 percent. That's the purely nominal price change. But the real price change there is the difference between 9,400% and 10,000% - that's the 5% real loss on the day so far.
As with so much in economics and markets it's vital for us to make the distinction between nominal price changes and real ones.