Why Rexahn Pharmaceuticals, Inc. (RNN) Shares Plunged

Published on April 13, 2017 at 2:30 pm by Insider Monkey Team in Market Movers, News

Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) shares are deep in the red today after the company announced plans to implement a 1-for-10 reverse stock split effective May 5, 2017. The company is likely doing so to stay listed on the NYSE MKT. Shareholders will receive cash in lieu of any fraction of a share that they would otherwise be entitled to receive.

CEO Peter D. Suzdak said, ‘I want to thank our shareholders for their continued support of Rexahn. Our board has determined that this is an appropriate time to implement a reverse split and we believe that it will enhance the appeal of our common stock to the financial community, including institutional investors and the general investing public. The continued commitment of our shareholders has allowed us to progress the clinical development of our targeted therapies for the treatment of cancer patients’.

Although the reverse stock split doesn’t affect Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN)’s fundamentals, the split may make it easier for the stock to short, hence the decline today.

What Does The Smart Money Sentiment Say?

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None of the 742 top funds we track reported holding Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) at the end of Q4.

The Bottom Line

Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) shares are lower due to a proposed reverse stock split. For more reading, check out ‘10 Most Popular Stocks Among Hedge Funds‘.