Shares of MicroCloud Hologram Inc. soared higher Monday, after the China-based holographic-technology company disclosed that it had regained compliance with Nasdaq listing requirements.
Basically, the company’s 1-for-10 reverse stock split that took effect earlier this month worked as intended.
MicroCloud’s stock
HOLO,
-7.11%
shot up 65.7% in afternoon trading, but pared earlier intraday gains of as much as 111.8%. Trading volume swelled to 47.5 million shares, compared with the full-day average of about 10 million shares. The stock has been halted twice due to volatility since the open.
If MicroCloud’s ticker looks familiar, it’s because the company made headlines earlier this month when the “meme”-like stock skyrocketed 1,092.1% on Feb. 7. The rally had come days after the 1-for-10 stock split took effect, on Feb. 2.
Don’t miss: MicroCloud Hologram’s stock surges on record volume, but don’t call it a short squeeze.
The company said it had received notice in November from the Nasdaq stock exchange
COMP
that its shares had failed to maintain a minimum price of $1 over the previous 31 consecutive business days, as required by the Nasdaq’s listing rules.
The reverse stock split effectively raised the price of the stock from 19.2 cents to a split-adjusted $1.92 as of the Feb. 1 close. A “meme”-like rally sent the stock to closing high of $66.36 on Feb. 16, before it plummeted 90% amid a four-day losing streak to close Friday at $6.61.
After Friday’s close, the company said in a 6-K filing with the U.S. Securities and Exchange Commission that it was notified by the Nasdaq that, since the stock has closed above $1 for the past 13 consecutive trading days, the company has “regained compliance” with listing rules.
The company’s market capitalization at current stock prices is about $65.8 million, according to FactSet data.
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