The Situation
Cosmos Holdings Inc (NASDAQ: COSM) shares – a global healthcare pharmaceutical group with over 1130 pharmacies – plunged on Monday after it carried out a 1-for-25 reverse stock split. As of 11:00 PM ET, Cosmos shares dropped by 59.71%.
The Explanation
Cosmos Holdings Inc officially went public on Dec 13, 2013, and has dropped by 96.91% overall. The company has fallen 89.84% year-to-date after it rose by 120.43% over the last month, as of press time.
The company announced that it carried out its 1-for-25 reverse stock split on Friday to regain compliance with Nasdaq listing requirements. This comes as the company will effectively change its name from Cosmos Holdings Inc to Cosmos Health Inc.
See the $COSM chart performance here.
The Effect
Cosmos Holdings Inc stocks reportedly dropped upon officially carrying out the company's 1-for-25 reverse stock split. The investors' reaction happened despite the company's CEO Greg Siokas saying they have secured funding to help them significantly de-lever the company's balance sheet.
Since investors can't know for sure whether the company's performance after the reverse stock split and name change will be positive, it is more important to focus on other aspects of Cosmos' business.
See full $COSM flow at: https://unusualwhales.com/stock/COSM/flow-overview
