Tharimmune (NASDAQ: THAR) stock should leap 2,500%. A 25x rise in THAR stock will not be because one of the cancer drugs has suddenly been proven to work - this is a purely nominal and technical change here. There’s a specific problem that must be solved. So, that specific problem will be solved with a technical change. This is also going to be purely a change in the nominal stock price - no wallets will be filled or even harmed by this.
The basic business line: “Tharimmune, Inc., a clinical-stage biotechnology company, engages in the development of therapeutic candidates for rare, inflammatory, and oncologic diseases. The company’s pre-clinical immuno-oncology pipeline includes TH104, a product candidate for the treatment of liver-related and other pruritogenic inflammatory conditions; TH3215 and TH0059 that are product candidates” and so on. There was some excitement back in February as some test results looked good but so far at least nothing to really set the heart racing. This then produces a problem, THAR stock is in danger of losing the Nasdaq listing.
Tharimmune stock price from Google Finance
The problem here is simply the Nasdaq listing rules. It’s necessary to retain a $1 minimum bid price. This isn’t because penny stocks are bad or evil - it’s just that the major New York markets associate penny stocks with being not quite right. Therefore the minimum bid price. There is a solution to this, simply declare that 25 old shares are now one new - a one for 25 reverse stock split: “a 1-for-25 reverse stock split of its issued and outstanding shares of common stock. The reverse stock split was previously approved by Tharimmune stockholders at the Annual Meeting of Stockholders held on October 23, 2023, with the final ratio determined by the Company's Board of Directors. The reverse stock split will become effective at 4:01 p.m. Eastern time on November 20, 2023. Commencing with the opening of trading on The Nasdaq Capital Market ("Nasdaq") on November 21, 2023, the Company's common stock will trade on a post-split basis under its existing trading symbol "THAR."”
This does not change the market capitalisation of the company, just the number of shares that make it up. Therefore the stock price reacts mechanically, rising 2,500%, or 25x. Thus the Nasdaq listing is saved. Well, for the moment it is, and of course this still leaves the basic business problem of finding a drug that works open.