The value Sonoma Pharmaceuticals, Inc. (NASDAQ: SNOA) shares are increasing significantly today, indicating that the market has responded favorably to the company’s switch to a reverse-split. SNOA stock surged 9.66% to $3.49 as of the most recent check.
Specifics of the Reverse Stock Split
Previously this week, Sonoma Pharmaceuticals announced that it will reverse its stock split one-for-20. The split was planned to take effect on August 29, 2024, at 5:00 PM EDT. The company’s shareholders approved the reverse split during the annual meetings on August 14–23, 2024, which led to this decision.
The Board of Directors authorized the split and set the ratio on August 23, 2024. In order to preserve Sonoma’s listing status on the Nasdaq Capital Market, a calculated strategic maneuver was made with the reverse stock split. Sonoma hopes to increase investor interest, boost stakeholder confidence, and open up new business growth options by keeping its Nasdaq listing.
Every twenty shares of Sonoma’s common stock will convert into one new share, without altering the par value per share. Consequently, the total number of shares will reduce from approximately 20 million to around one million.
Operational Developments
Operationally, Sonoma Pharmaceuticals has expanded the claims for its Nanocyn Disinfectant and Sanitizer after the Australian Therapeutic Goods Administration (TGA) granted an extension. Utilizing Sonoma’s proprietary Microcyn technology, Nanocyn is manufactured for MicroSafe and has received additional approvals for its ability to effectively combat Clostridium difficile (C. diff.) and Candida auris (C. auris) in less than ten minutes.
Nanocyn has previously been approved by the Australian Register of Therapeutic Goods for use against a variety of germs, viruses, influenza A, and SARS-CoV-2. Nanocyn is already recognized by the Environmental Protection Agency (EPA) of the United States as a disinfectant that effectively fights diseases such as MRSA, Salmonella, mpox, SARS-CoV-2, and others.
Strategic Impact
By tackling a variety of dangerous pathogens, these additional TGA approvals strengthen Sonoma Pharmaceuticals’ leadership in broad-use disinfection technology and reaffirm its dedication to strict safety regulations.
