Why Did MBRX Stock Plummet Over 25% Today?

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Moleculin Biotech will implement a 1-for-25 reverse stock split of its common stock, effective December 1.

  • The reverse split will consolidate every 25 shares of outstanding common stock into a single share, while maintaining the current par value of $0.001 per share.
  • The split will reduce the number of outstanding shares from roughly 51.7 million to about 2.1 million
  • Total authorized share count will remain unchanged at 500 million.
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Shares of Moleculin Biotech Inc. (MBRX) plunged over 25% on Wednesday to their lowest in five months, after the company announced a reverse stock split.

Moleculin Biotech will implement a 1-for-25 reverse stock split of its common stock, effective Dec. 1, 2025, following which, the company’s shares will begin trading on a post-split basis on the Nasdaq Capital Market under the existing ticker symbol MBRX.

The Reverse Split

The reverse split will consolidate every 25 shares of outstanding common stock into a single share, while maintaining the current par value of $0.001 per share. Moleculin added that it will not issue fractional shares, and any shareholder entitled to one will receive a cash payment to replace the fractional amount.

The move will significantly reduce the number of outstanding shares from roughly 51.7 million to about 2.1 million, while the total authorized share count will remain unchanged at 500 million.

Companies often use reverse splits to avoid being delisted, as primary exchanges require stocks to maintain a minimum price of $1.00. If a stock trades below this level for 30 straight sessions, the company receives a deficiency notice and is given a limited window to lift the share price. A reverse stock split can help the firm regain compliance and keep its listing.

How Did Stocktwits Users React?

Retail sentiment for MBRX on Stocktwits remained in the ‘bearish’ territory over the past 24 hours.

One user believes a share repurchase could go some way in boosting confidence.

MBRX stock has fallen more than 80% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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