Why Agenus Stock Plummeted by Nearly 30% on Its Stock Split News Today

Core Viewpoint - Agenus announced a reverse stock split, causing a significant drop in its stock price by nearly 30%, contrasting with the S&P 500's slight gain [1]. Group 1: Reverse Stock Split Details - Agenus plans a reverse stock split at a ratio of 1 for every 20 shares currently held, pending an investor vote on April 3 [2]. - The primary motivation for this move is to raise the company's stock price above the $1 minimum required by Nasdaq, as the current price is approximately $0.65 [2]. Group 2: Investor Sentiment and Company Goals - Investors reacted negatively to the announcement, viewing the reverse stock split as a sign of desperation for a struggling business [3]. - The company aims to use this time to achieve key milestones, including submitting a Biologics License Application for metastatic colorectal cancer and prioritizing other clinical programs [3].