CLVS - Why did Clovis stock jump today? Shareholders reject reverse stock split
- Cancer-focused biotech Clovis Oncology ( CLVS ) recorded the second biggest intraday gain for the year on heavy volume on Friday after the company’s shareholders voted against a proposal to implement a reverse stock split.
- More than 98.8M Clovis ( CLVS ) shares changed hands compared to the 65-day average volume of ~13.6M.
- Announcing the outcome of its 2022 stockholder meeting held yesterday, the company said that the investors did not approve the 1-for-7 reverse stock split and a plan to decrease the number of authorized shares of common stock concurrently.
- Out of three proposals, the investors greenlighted only a decision to increase the number of shares available for issuance under a stock incentive plan (before the reverse stock split). The market cheered the outcome sending Clovis ( CLVS ) shares to the highest level since early April.
- Read: Citing the cash position of loss-making Clovis ( CLVS ), Seeking Alpha contributor Edmund Ingham warned in April that “investor dilution is a near certainty” for the company.
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Why did Clovis stock jump today? Shareholders reject reverse stock split