Blujay Diagnostics (NASDAQ: BJDX) stock will jump some 2,000% at the open today. BJDX stock leaping that 20x is, though, a purely technical response, it's not in fact anything interesting. Interesting as in the sense of their suddenly starting to make money or anything. Bluejay did rise 16% on Friday after the news of this upcoming event and rise, and that's what the real price change was here. The 20x is purely nominal.
As to what's done at Bluejay: “Bluejay Diagnostics, Inc., a medical diagnostic company, develops rapid test for the monitoring of disease progression in the United States. It is developing Symphony platform, a technology platform comprising Symphony analyzer” etc, etc. The important point here is that it's not selling this test, or that test. It's selling a platform upon which tests are, or can, be done. Thus the initial sale is more difficult, obviously, but also once the sale is made then there should be a constant stream of income.
This hasn't been working out all that well, to be fair. From the IPO at $5 or so in Nov 2021 to today's 30 cents is not good. And it's that stock price performance that leads to today's event.
Bluejay Diagnostics stock price from NASDAQYou can't remain - not forever at least - on NASDAQ as a penny stock. Just not fashionable, not the done thing. So, with a stock price like this something must be done. That something is a reverse stock split, just announce that what used to be 20 shares are now 1. “The Reverse Stock Split is being implemented to increase the per share trading price of the Company's common stock for the purpose of ensuring a share price high enough to comply with the minimum $1.00 bid price requirement for continued listing on The Nasdaq Capital Market.” As nothing else changes the stock price should mechanically change by that same 20x. The 16% rise in Friday was a real price rise, one of relief that this would be sorted perhaps, the 2,000% today will be purely nominal.
Which does leave us with what next for Bluejay then? We ourselves would expect a new stock issue real soon now. The aim of being on NASDAQ is to be able to raise capital. The aim of staying - rather than falling to the OTC - is to be able to raise capital. Bluejay seems to have cash of around the $10 million mark and losses per year of around $9 million. So, yes, we'd expect a capital raise any time real soon now. One of the reasons, we might say, for doing the reverse stock split.