Shares of Guardion Health Sciences Inc. GHSI, -23.13% tumbled 24.0% in premarket trading Friday, after the medical foods company focused on ocular health said it was implementing a 1-for-6 reverse stock split, to help maintain listing requirements. The reverse split will go into effect with the opening of trading on March 1, meaning stock price on Monday will start at six-times Friday’s closing price. The company said on Sept. 20, it received a letter from the Nasdaq’s listing qualifications department regarding noncompliance with the $1.00 per share minimum bid price requirement. The stock had closed at 20 cents on Sept. 30, then rose to a closing high of $1.16 on Feb. 16, before tumbling to close Thursday at 69 cents. In the company’s latest quarterly filing in November and annual report filed a year ago, the company has said there is substantial doubt about its ability to continue as a going concern. Reverse stock splits are often viewed by investors as confirmation of a companies troubles. Despite the troubles, the stock has more than doubled (up 127.7%) over the past 12 months, while the S&P 500 SPX, -0.46% has gained 22.9%.
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