After a stock goes on a massive run in a short span of time, the corrections also come quickly and that seems to have happened with the RushNet Inc (OTCMKTS:RSHN) stock this week.
Over the course of the past week, the RushNet stock has corrected by as much as 78%. In light of the correction, it might be a good time for investors to take stock of the situation with regard to RushNet. One of the important announcement made by the company along with its acquisition target heliosDX earlier this month was the cancellation of the proposed reverse stock split.
The company went on to state that it was also going to submit a filing confirming the cancellation of reverse stock split to the Secretary of State of Colorado.
Last week, it also announced that after its acquisition of heliosDX is closed, RushNet is going to spin off both companies into separately listed entities. In addition to that, it is also important to point out that RushNet shareholders are also going to be rewarded following the spinoff. They are going to be awarded 12 shares in the spun-off heliosDX company for every block of 1000 RushNet shares that they own.
Market Reaction:
On Wednesday, RSHN stock fell 22% to $0.0046 with more than 1.08 billion shares, compared to its average volume of 250.96 million shares. The stock has moved within a range of $0.0042 – 0.0059 after opening the trade at $0.0059. Over the past 52-week, the stock has been trading within a range of $0.0001 – 0.0249.
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