Virax Biolabs (NASDAQ:VRAX) stock is on the rise Thursday as investors react to the news on an extension from the Nasdaq Exchange.
According to a press release from the diagnostics test kits maker, the Nasdaq is giving it an additional 180 days to regain compliance. The company is currently trying to boost the price of its stock back above $1 per share to avoid delisting.
This marks the second set of 180 days that Virax Biolabs has been given to regain compliance. The first was on Jan. 30, 2023. With this new notice, the company now has until Jan. 29, 2024, to regain compliance with Nasdaq listing standards.
In order to regain compliance, Virax Biolabs has to do more than just get VRAX stock back above $1 per share. It has to do this and maintain a share price above that trading minimum for 10 consecutive business days.
Who Will VRAX Stock Regain Compliance?
Virax Biolabs hasn’t laid out plans for how it will boost its share price above the $1 minimum. One option the company may take is a reverse stock split. This would consolidate shares to increase their price without adjusting the company’s market capitalization.
Trading of VRAX stock is light today with some 29,000 shares on the move. That’s still a ways off from its daily average trading volume of about 259,000 shares. Even so, the stock is up 1.1% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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