ACST - Why Shares of Acasti Pharma Slumped Tuesday
Acasti Pharma (NASDAQ: ACST) fell by more than 18% in Tuesday trading. The stock, which closed at a split-adjusted price of $3.21 on Monday (more on that below), opened at $2.94 on Tuesday, then dropped to a low of $2.58. The stock has lost more than 33% of its value over the past three months, and is far from the split-adjusted 52-week high of $9.76 it set in February.
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Investors were unimpressed by the company's two big announcements on Friday, and Tuesday's move lower was just a continuation of the market's reaction to that news . The company said that it had closed its merger with Grace Therapeutics; former Acasti shareholders now own 59% of the combined company. The second -- and more concerning -- part of the announcement was that the company would perform an 8-1 reverse split at the start of trading on Aug. 31. This was being done, management said, to bring Acasti back into compliance with the NASDAQ's minimum bid price rule.
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Why Shares of Acasti Pharma Slumped Tuesday