Femasys Reverse Stock Split May Not Prevent Nasdaq Delisting Risk, Observer Warns

Femasys, Inc. (FEMY) has disclosed a new risk, in the Share Price & Shareholder Rights category.

An external observer notes that if Femasys, Inc. undertakes a reverse stock split to regain Nasdaq minimum bid price compliance, the post-split trading price may not scale proportionately and any initial price increase may prove temporary, potentially falling again below the $1.00 threshold and triggering renewed delisting risk. He further observes that even if the split restores bid price compliance, Femasys could still fail other Nasdaq criteria such as the $2.5 million stockholders’ equity requirement, and any resulting delisting could severely impair share liquidity, capital-raising ability, and overall investment value.

Overall, Wall Street has a Moderate Buy consensus rating on FEMY stock based on 2 Buys.

To learn more about Femasys, Inc.’s risk factors, click here.