Daré Bioscience (DARE) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Daré Bioscience may face considerable risk if it proceeds with a reverse stock split, a move known to elicit negative market perceptions. Such an action could disproportionately inflate the nominal share price without increasing market capitalization, potentially diminishing the company’s overall market value should the share price not adjust as intended. Furthermore, the contraction in the number of available shares post-split could adversely impact liquidity, making it tougher for shareholders to trade, particularly for those left with “odd lots” that generally attract higher transaction costs and lower market interest.
Overall, Wall Street has a Moderate Buy consensus rating on DARE stock based on 2 Buys.
To learn more about Daré Bioscience’s risk factors, click here.
