iBio (IBIO) Stock Will Not Undergo A Reverse Split

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iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) has been a hot topic as of late. After announcing a collaboration with CC Pharming to develop a vaccine for the Wuhan coronavirus, the stock started to soar.

However, before the run, the company was in trouble. A detrimentally low trading price was threatening delisting and harming the company’s ability to access capital. As such, the company was gearing up for a reverse split to remedy the situation.

Late yesterday, the company said that it would not be moving forward with the reverse split. Of course, this news excited investors and the stock is trading on early gains of more than 3%. Here’s what’s going on:

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iBio Stock Edges Up As Reverse Split Won’t Happen

In the press release issued late yesterday, iBio said that it will not seek authority from shareholders to move forward with a reverse stock split. It was expected that at the 2019 Annual mMeeting, the copany would hold a vote, asking for support in the move.

To make the decision to not move forward with the reverse split, IBIO said that it took into account, the trading history of the stock. The company also said that the decision had to do with various meetings with investment banks, investment funds, and other members of the investment community.

Once taking all of this information into account, IBIO said that it came to the conclusion that its stock price, investor interest, and financing and capital raising abilities were satisfactory. In fact, the management team said that a reverse split would not provide any material enhancement of opportunity.

While a reverse split may take place in the future, at the moment, it is not necessary. This makes sense. After all, reverse splits are designed to increase the price per share of a stock, With IBIO running up around 900% in the last 30 days, there really is no need for an artificial price increase.

What’s Next?

For those of you who haven’t been following the story, iBio has a lot going for it at the moment. The company teamed up with an experienced vaccine developer, CC Pharming, to come up with a vaccine for COVID-19.

While CC Pharming has experience in creating vaccines for SARS, a condition very similar to COVID-10, this isn’t the only advantage the partnership has. In fact, iBio owns the FastPharming Facility, making it a likely winner, regardless of which company develops a vaccine first.

The FastPharming Facility was developed under a government contract that was aimed being able to quickly prepare vaccines and other medical agents for use in a pandemic. As such, to my knowledge, there are no manufacturing facilities that can compete with the speed at which IBIO can manufacture.

Considering this, no matter what company wins the race to develop the first effective vaccine for COVID-19, IBIO is likely to be a highly saught after manufacturing partner.

With that said, the stock has run dramatically lately, and as I predicted, we saw some profit taking yesterday. This profit taking may continue today and throughout the next few sessions. After all, after 900% gains, investors are going to want to tap into the loot!

Nonetheless, the long-term opportunity is still just that, an opportunity. Once the profit taking is over, investors will have a discounted opportunity to get involved in what I believe will be substantial growth ahead as IBIO plays an integral role in the work to bring COVID-19 to extinction.

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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