Onconetix Inc. (ONCO) shares took a nosedive on Friday, plummeting 29.9% to 8 cents. The dramatic drop followed the company’s announcement of a 1-for-40 reverse stock split, a move designed to help Onconetix meet Nasdaq’s minimum bid price requirement.
The news came after Onconetix held its 2024 annual meeting on September 5th, where shareholders approved several proposals. These included the election of Timothy Ramdeen and Ajit Singh as directors for a three-year term, amendments to the company’s equity incentive plan to increase the number of shares issuable, and authorization for a reverse stock split with a ratio ranging from 1-for-30 to 1-for-60. The board ultimately selected a 1-for-40 ratio, effective September 24th.
In addition to the reverse stock split, shareholders also approved the issuance of shares related to the conversion of Series A and Series B Preferred Stock, a private placement, and the assumption of stock options from Proteomedix AG. EisnerAmper LLP was also ratified as the company’s independent auditor for 2024.
The reverse stock split will significantly reduce Onconetix’s outstanding shares from approximately 30.2 million to about 755,000.
Is ONCO a Good Stock to Buy?
Whether or not a stock is a good buy depends on a variety of factors beyond the current share price. While valuation metrics and price action are important, consider factors like dividends and share buyback programs.
Onconetix doesn’t currently pay a dividend. However, the company does have options for returning value to shareholders.
To evaluate buyback programs, stay up-to-date on the latest news regarding Onconetix. Buyback programs often act as a support for share prices, providing a backstop for demand.
According to Benzinga Pro, ONCO has a 52-week high of $0.54 and a 52-week low of $0.08. This information can provide context for the current price action and potential future movements.
Remember, this is just a starting point for your research. Always conduct your own due diligence before making any investment decisions.
