Ernexa Stock Drops On 1-For-15 Reverse Stock Split To Regain Nasdaq Compliance: Retail Sentiment Improves But Stays Bearish

Shares of Ernexa Therapeutics (ERNA) fell 13% on Tuesday morning after the company announced a reverse stock split to regain compliance with the $1 minimum bid price required for continued listing on Nasdaq.

The reverse stock split will be at a ratio of 1-for-15, effective June 12, 2025, at 12:01 a.m. Eastern Time. The company's common stock is expected to begin trading on a split-adjusted basis when the market opens on June 12.

As a result of the reverse stock split, every 15 shares of the company's common stock issued and outstanding will be automatically reclassified into one new share of common stock.

No fractional shares will be issued in connection with the reverse stock split, and no cash or other consideration will be paid in connection with any fractional shares.

As of Tuesday, the company had 110.4 million shares of common stock issued and outstanding, which it anticipates will result in approximately 7.4 million shares of common stock issued and outstanding on a split-adjusted basis.

Ernexa also stated that it believes the reverse stock split is a key step in strengthening its financial foundation and maintaining access to the capital markets needed to advance its clinical programs.

Ernexa is developing innovative stem cell therapies for the treatment of advanced cancer and autoimmune disease.

On Stocktwits, retail sentiment around Ernexa improved from 'extremely bearish' to 'bearish' territory over the past 24 hours while message volume remained at 'high' levels.

ERNA stock is down by about 56% this year and by about 91% over the past 12 months.

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