Titan Pharmaceuticals TTNP Stock News

Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) is having an incredibly strong day in the market today. The stock is up around 60% ahead of a vote deadline for a potential reverse stock split. Here’s what’s going on:

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TTNP Stock Is Rocketing Ahead Of RS Vote

Titan Pharmaceuticals is in an interesting position. The company’s price has been too low for too long, threatening the ticker potentially being booted from the NASDAQ. In order to remedy the situation, the company is trying to move forward with a reverse split.

Of course, through the reverse split, the price per TTNP share will increase, allowing it to meet requirements for continued listing on the NASDAQ. However, for the split to happen, the company must receive a majority vote from shareholders in favor of the move.

The deadline for the vote is today at noon eastern time. That’s not far off and the market seems to be anticipating positive news.

Market Anticipates Yes Vote

Looking at the move in the market and the messages on various Tital Pharmaceuticals social boards, the market seems to be anticipating that the company will receive a yes vote.

In general, when a company moves forward with a reverse stock split, while the move is simply cosmetic, the stock tends to tank. This is because investors see reverse splits as potential signs of danger ahead.

However, without the split, TTNP will be delisted from the NASDAQ. Of course, if this were the case, the company would see a substantial decrease in investor interest, which would be more painful.

So, all in all, an RS seems like it might be the best route for the company.

Why Is The Stock Flying?

It seems as though Titan Pharmaceuticals is in a bit of a rough situation. The RS is a bad signal, but without it, delisting is ahead. So, why is the stock flying?

Recently, TTNP has been a heavily shorted security. If shareholders vote for the reverse stock split, the lesser of two evils will be the case, and the stock has the potential to tick upward.

Of course, if this takes place, those who shorted the stock would quickly start to lose. So, in anticipation of a positive vote, TTNP short sellers seem to be covering their positions, leading to the beginning of a short squeeze.

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