One of the stocks that rose sharply on Monday was that of Kaival Brands (OTCMKTS: KAVL), a company involved in the global distribution of products made by Bidi Vapor LLC. The stock was the center of attention yesterday and managed to post gains of up to 60% amid strong interest.

There was no fresh news on the company yesterday, but it looks like the remarkable rally in the stock is tied to the implementation of the 1 for 12 stock split in Kaival Brands’ common stock this week. last. The reverse stock split will go into effect from today before the markets open.

The company decided to go for a reverse stock split after sending a request to the NASDAQ Capital Market for a price increase. Following the reverse stock split, each block of 12 shares held by an investor will be converted into a single common share of Kaival. It should be noted that a reverse stock reverse usually results in a lower share price, but it’s pretty clear that investors don’t seem confused by this move. It remains to be seen how the stock will fare after starting to trade on a split adjusted basis from this morning.

Market reaction:

On Monday, KAVL stock climbed 60% to $ 0.88 with over 1.04 million shares, compared to its average volume of 149,000 shares. The stock had traded in a range of $ 0.5300 to 0.9700 after the trade opened at $ 0.55. Over the past 52 weeks, the stock has traded in a range of $ 0.4800 to 3.6500.

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