Today I want to tell you about a little-known small-cap stock that’s receiving a lot of interest — $42 million worth, to be exact — from some major investors…
And is setting up what could be a potentially massive opportunity for everyday traders like you and me.
Now, you may recall that both Tesla and Apple recently underwent stock splits.
Well, this particular stock has just undergone a 1:50 reverse stock split.
Let me explain…
Before their stock splits at the end of August, Tesla was trading for more than $2,000 per share, while Apple was going for over $500.
After the 5:1 split, Tesla shares dropped down to about $480…
And Apple was down to about $130 after its 4:1 stock split.
The idea here is that by dividing every share into 4 or 5, you create more overall shares while reducing their price…
Thereby making the stock more accessible to a wider range of investors.
Now, it’s pretty much the exact opposite in the case of a reverse stock split.
This penny stock was trading for roughly .48 cents…
But after consolidating every 50 shares into one, it’s now trading for $19.
Now, that’s easy enough to understand.
But the bigger question is… Why?
Why would a company intentionally want to raise their stock price… while cutting down the number of outstanding shares?
Well, this particular company just accepted a private placement deal worth $42 million.
A private placement is when an investor purchases equity in a company directly from the company itself, rather than on the open market.
And at $42 million, this investor just scooped up a roughly one-quarter stake in this biopharm firm.
But here’s where it gets really interesting.
One of the stipulations of the deal was that the firm execute this reverse stock split…
So that it would meet the requirements for a pending uplisting to the Nasdaq exchange.
You see, the big institutional traders — the “market movers” like hedge funds, mutual funds and million-dollar accounts…
They’re generally forbidden from owning unlisted penny stocks that trade on the pink sheets.
That’s precisely what this stock was…
Prior to the reverse split.
However, once that stock lands on a major exchange like the Nasdaq, it opens up the door for those big-money investors to get their hands on it…
And potentially send its value through the roof.
Now, like I said, the Nasdaq listing for this stock is still pending…
But I believe that if the listing does happen, this thing could easily rocket 100… 200… even 300% or more in no time flat.
Now my Insider Report members have been holding this stock in their portfolios since August, and it’s already gained 41.4% in that time.
But if the Nasdaq listing goes through, the potential return could absolutely skyrocket.
So if you’d like to learn more about the Insider methodology I described in the video above…
And learn how you can position yourself to take advantage of this potentially monstrous opportunity today…