Shares of Histogen Inc. (HSTO) exploded on April 12, during the regular trading session. The stock peaked at $0.4161 to add 67.78% at the close of the session. This rally was then followed by corrections in the after-hours as HSTO fell by 4.35%. Thus, the stock was then trading at a value of $0.3980 per share.
The company’s latest SEC filing regarding its upcoming Annual Meeting of Stock Holder might be a driver for the rise in the stock.
HSTO’s Latest SEC Filing
On April 11, the company file a notice of the 2022 Annual Meeting of Stockholders and proxy statement with the SEC. The annual meeting will be held on Wednesday, June 1, 2022, at 8:00 a.m. Pacific Time. Moreover, the main proposals up for a vote during the meeting include the election of Class III directors, a reverse stock split, selection of MHM as an independent public accounting firm, and compensation of executive officers.
The reverse stock split proposal is made in connection to the company’s non-compliance with the Nasdaq minimum bid requirement. With the reverse stock split, HSTO hopes to meet Nasdaq listing requirements while also improving the perception of its common stock as investment security. Furthermore, the company has till August 15, 2022, to regain compliance with Nasdaq before the second extension runs out.
Market Analysis and HSTO
In the past months, the market has been hit by a multitude of threatening factors. An array of factors have created wide instability and volatility in the market. These factors include the Russian invasion of Ukraine, supply chain constraints, U.S. and China’s audit issue, hiking inflation, and rising interest rates among others. These widespread issues have investors running towards stocks that would be a safer bet in times of prevailing instability. Thus, among the safest bets lie the healthcare sector. Even the slightest news from a healthcare company is driving investors toward the stock in a frenzy.
Thus, HSTO has also been one of the stocks trending heavily on the slightest of news. While the SEC filing might have been a driving factor, the huge rally in the stock was a response created by the investors due to the larger picture.
As investors look for safe havens to bet on for making some profit in such tumulus times, HSTO proved to be a nice bet on Tuesday. The company’s recent SEC filing regarding its upcoming annual meeting instigated investors to bet on the stock. Therefore, the stock rallied big during the regular session but succumbed to corrections in the after-hours as investors started making gains.