Onconetix Stock Plunges 13.8% Amid Reverse Split

On June 13, 2025, Onconetix's stock experienced a significant drop of 13.8% in pre-market trading, marking a dramatic shift in its market position.

Onconetix has announced a 1-for-85 reverse stock split, which will reduce the number of its outstanding shares by 98%. This move is aimed at meeting Nasdaq's minimum bid price requirement of $1 per share, with the new trading to commence on June 13. The reverse split is seen as a last-ditch effort to avoid delisting from the Nasdaq exchange, where the company's stock has been trading at extremely low levels, far below the required threshold.

The company's financial health has been a major concern, with a trailing twelve-month EBITDA of -$7.4 million and a current ratio of 0.05, indicating severe liquidity issues. Additionally, Onconetix has missed Nasdaq's filing requirements for its March 31, 2025, quarterly report, further complicating its regulatory compliance.

Onconetix's reverse split has sparked debate among investors about its strategic rationale and the potential risks involved. While the move could temporarily stabilize the stock price, it also signals to investors that the company is prioritizing survival over growth. The split will eliminate fractional shares, potentially affecting smaller investors who hold these stakes.

One of the key factors influencing Onconetix's future is its non-binding letter of intent to merge with Ocuvex Therapeutics. If this deal materializes, it could provide fresh capital and expertise, but the heavily tilted nature of the deal raises questions about Onconetix's perceived value. Investors may view it as a backdoor listing for Ocuvex rather than a true merger of equals.

Despite the challenges, there are potential catalysts that could shift sentiment in Onconetix's favor. The company's prostate cancer diagnostic tool, Proclarix, recently presented new clinical data, which could generate revenue streams and partnerships if approved by the FDA. Additionally, the reverse split could concentrate ownership among fewer shareholders, enabling more decisive strategic moves.