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CNS Pharmaceuticals Implements 1-for-12 Reverse Stock Split to Consolidate Shares and Improve Market Position
ByAinvest
Sunday, Jul 20, 2025 1:52 am ET1min read
CNS Pharmaceuticals has announced a 1-for-12 reverse stock split, effective July 22, 2025. The company will continue trading on Nasdaq with a new CUSIP number. Analysts forecast an average target price of $7.00, implying a 681.25% upside from the current price of $0.90. The average brokerage recommendation is 2.5, indicating "Outperform" status.
CNS Pharmaceuticals (NASDAQ: CNSP) has announced a significant corporate action: a 1-for-12 reverse stock split, effective July 22, 2025. The biopharmaceutical company aims to consolidate its shares and potentially enhance its market position.Under the reverse split, every 12 shares will be combined into one share, with proportional adjustments made to outstanding warrants and equity-based awards. The company's authorized shares will be reduced to 25 million, while maintaining a par value of $0.001 per share. Fractional shares resulting from the split will be settled in cash.
The primary goal of this reverse stock split is to meet Nasdaq's minimum bid price requirement of $1.00 per share. This move is often seen as a compliance mechanism for companies facing potential delisting. The stock will retain its "CNSP" ticker but will receive a new CUSIP number: 18978H508.
Wall Street analysts have responded positively to this news. Based on the one-year price targets offered by 1 analyst, the average target price for CNS Pharmaceuticals is $7.00, implying a 681.25% upside from the current price of $0.90. The average brokerage recommendation is 2.5, indicating an "Outperform" status.
This reverse stock split comes at a critical time for CNS Pharmaceuticals, which is developing treatments for brain and central nervous system cancers. The biopharmaceutical sector is capital-intensive, requiring substantial funding for clinical trials. While the reverse split aims to maintain Nasdaq listing, it also signals potential capital structure concerns and challenges in securing necessary financing for their research pipeline.
References:
[1] https://www.stocktitan.net/news/CNSP/cns-pharmaceuticals-announces-reverse-stock-nans16ryh2br.html
[2] https://www.gurufocus.com/news/2987446/cns-pharmaceuticals-cnsp-implements-1for12-reverse-stock-split-cnsp-stock-news
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