Why Clovis Oncology Stock Is Crushing It Today
Shares of Clovis Oncology (NASDAQ: CLVS) were skyrocketing 41.9% higher at 11:12 a.m. ET on Friday. The huge gain came after the company reported the voting results on three proposals following the market close on Thursday.
Clovis' annual shareholder meeting was adjourned on June 9, 2022. This meeting was resumed on July 7 for shareholders to vote on proposals related to a 1-for-7 reverse stock split. Two of the proposals were not approved. A proposal to issue 4 million new shares was approved. However, the issuance was contingent upon the implementation of the reverse stock split, which won't be conducted as a result of the vote.
The bottom line with Clovis' shareholder vote is that the stock won't be diluted further at this point. The stock would have likely fallen had the proposals passed. This wasn't good news for short-sellers, who were betting that Clovis stock would fall on the reverse stock split.
Source Fool.com
