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.
Source Fool.com
