Bio-Path Holds Performs A Surprise Reverse Split

Bio-Path Holdings Inc. (BPTH) was very active in trading today. The company surprised the markets by executing a 1:20 reverse split before today’s open. A reverse split means the company converted every 20 shares into 1 share, adjusting the price of the stock to equal 20X yesterday’s close. This meant the price per share went from $0.13 yesterday to over $2.00 per share today. However, there was no increase in market cap since the price is adjusted to keep market cap equal after a reverse split. However, such a situation is often exploited by stock promoters, who often push the stock price up since the available number of shares is greatly reduced. Here’s a recap of what happened.