Orgenesis Inc (ORGS) shares took a significant dive on Monday, plummeting by 21% to reach 40 cents. This drop followed the company’s announcement of a 1-for-10 reverse stock split, effective September 24th at 5:00 pm ET. The company explained that this decision was made to satisfy Nasdaq’s minimum bid price requirement of $1.00.
The stock will continue to trade under the symbol “ORGS” on a split-adjusted basis starting September 25th. This reverse split will dramatically reduce the number of outstanding shares from 47.7 million to approximately 4.77 million. However, it’s crucial to understand that while the number of shares decreases, stockholders’ ownership percentages will remain unchanged.
For investors who own fractional shares, Orgenesis has announced that these will be paid out in cash based on the closing price on September 24th.
Should You Sell Your ORGS Stock?
When deciding whether to hold onto or sell a stock, investors should carefully consider factors like their time horizon, unrealized gains, and total return. Orgenesis’s stock has seen a rough year, decreasing by 29.34% in the past year. An investor who bought shares at the beginning of the year would experience a loss of $0.05 per share if they sold today. The stock’s downward trend continues, with a 37.67% decline over the past month. This means an investor who bought shares on August 1st would face a capital loss of $0.33.
Despite these recent setbacks, it’s important to remember that Orgenesis shares have an all-time high of $5.02, representing a potential 1045.86% upside from current levels. Data from Benzinga Pro shows a 52-week high of $1.08 and a 52-week low of $0.25 for ORGS.
The reverse stock split is a significant event for Orgenesis and its shareholders. It’s a move aimed at stabilizing the stock and potentially attracting more investors. However, the long-term performance of ORGS will ultimately depend on the company’s future business performance and its ability to achieve its goals. Investors need to carefully assess the risks and potential rewards before making any decisions about their ORGS holdings.
