Brickell Biotech Announces 1-to-45 Reverse Stock Split, Stock Tanks

(RTTNews) - Brickell Biotech, Inc. (BBI), a clinical-stage pharmaceutical company, Friday announced a reverse stock split of its common stock at a ratio of 1-to-45 that will become effective on July 5, 2022.

The company's common stock will begin trading on a split-adjusted basis at the opening of the market on July 5, 2022.

The 1-for-45 reverse stock split will reduce the number of outstanding shares of company common stock from about 121.1 million shares to around 2.7 million shares.

The purpose of the 1-for-45 reverse stock split is to raise the per-share trading price of the company's common stock, which is intended to result in its regaining compliance with the $1.00 per share minimum bid price requirement for continuous listing on The Nasdaq Capital Market.

The company's stock slipped after the news and closed down 22% on Friday's regular trading. It further dropped 3% in extended session.