NeuroMetrix shares slump after clearing 1-for-4 split

NeuroMetrix (NSDQ:NURO) said today it consummated its 1 for 4 reverse split of its common stock, trading at a split-adjusted basis yesterday.

Stocks rose on Tuesday to open at $3.01, but dropped to close at $2.65. Today, shares of NURO opened at $2.70 and fell over 6% to close at $2.43, down roughly 19% from its opening price on Tuesday.

The move was initially announced Monday, primarily enacted to increase per share trading price to satisfy the NASDAQ Capital Market’s $1.00 minimum bid price requirement, NeuroMetrix said.

As a result, every 4 shares of the Waltham, Mass.-based company’s stock was consolidated into 1 issued and outstanding share, and no fractional shares will be issued.

Shareholders who would be entitled to receive a fractional share will receive a cash payment in lieu thereof, the company said.

In August, NeuroMetrix released preliminary data from a clinical study of its Quell wearable pain relief device for patients with chronic pain.

The study found that 81% of the patients reported improvements in chronic pain levels and overall health after 60-days of using the device, NeuroMetrix said.

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