One of the stocks which made a strong move on Monday was that of Kaival Brands (OTCMKTS:KAVL), a company which is involved in worldwide distribution of products manufactured by Bidi Vapor LLC. The stock was in considerable focus yesterday and managed to record gains of as much as 60% amidst heavy interest.
There was no fresh news about the company yesterday but it seems that the remarkable rally in the stock was related to the implementation of the 1 for 12 reverse stock split in the Kaival Brands common stock last week. The reverse stock split is going to go into effect from today before the opening of the markets.
The company decided to opt for a reverse stock split after it had sent in an application to the NASDAQ Capital Market for an uplisting. Following the reverse stocks split, each block of 12 shares owned by an investors is going to be converted into a solitary common share in Kaival. It should be noted that usually a reverse stock split leads to a decline in the stock price but it is quite clear that investors seem to be unfazed by this move. It remains to be seen how the stock performs after it starts trading on a split adjusted basis from this morning.
Market Reaction:
On Monday, KAVL stock soared 60% at $0.88 with more than 1.04 million shares, compared to its average volume of 149k shares. The stock had moved within a range of $0.5300 – 0.9700 after opening the trade at $0.55. Over the past 52-week, the stock has been trading within a range of $0.4800 – 3.6500.
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