nasdaqA Biotech That Already Did One Reverse Split This Year Wants to Do Another

In July, Curis turned every 20 of its shares into one. Four months later, the company wants to do it again.

A special shareholder meeting on November 18 will vote on a second reverse stock split. The board is asking for authority to merge anywhere from 5 to 12 existing shares into each new one — with the exact ratio left to its own discretion — and six months from the vote date to act on the approval.

Shares closed 55.48% higher at $1.1100, on dollar volume of about $229 million.

The first consolidation took effect on July 2 at a 1-for-20 ratio. The company now has about 6.7 million shares outstanding. A reverse stock split reduces the number of shares in circulation and raises the price of each one by the same proportion — an existing holder still owns the same stake in the company, but holds fewer shares at a higher price per share.

If shareholders approve the proposal on November 18, the board has up to six months to decide whether and at what ratio to proceed. It has also reserved the right to abandon the split entirely, even after a yes vote.