Cosmos Health Inc.’s stock price nearly tripled Friday as investors responded to the company’s reverse stock split, but those gains disappeared in after-hours trading. The Chicago-based company announced the 1-for-25 stock split late Thursday in an effort to regain compliance with the Nasdaq’s $1 minimum bid price requirement, and it went into effect at the open of trading Friday morning. The company also changed its name from Cosmos Holdings Inc. to Cosmos Health Inc.
though its ticker remains the same.
The stock initially plunged Friday before rallying for a 178.9% daily gain to $23.01 amid record trading volume, though shares then fell more than 65% in after-hours trading, sending shares lower than their Thursday close on a split-adjusted basis. Volume in the regular session reached a record of more than 115 million shares Friday, according to FactSet, which recorded a previous daily volume record of 16.1 million on Nov. 23 and a five-day average volume of 2.1 million. See Now: What can we expect from meme stocks AMC, GameStop and Bed Bath & Beyond in 2023? “We are pleased to proceed with the reverse split of our stock which is required for us to re-gain compliance with Nasdaq’s minimum bid price requirement,” Cosmos Health CEO Greg Siokas said in a statement. “Being listed on Nasdaq has been a key part of our strategy to fund our growth opportunities for the benefit of all our shareholders.” The company uplisted …