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Video: What is a Stock Split?
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Larimar Therapeutics is a clinical-stage biotechnology company focused on developing treatments for patients suffering from rare diseases using its cell penetrating peptide technology platform. Co.'s lead product candidate, CTI-1601, is a biologic fusion protein that is administered subcutaneously, consists of a cell penetrating peptide (CPP) genetically fused to human frataxin (FXN), and includes a mitochondrial targeting sequence. Using its proprietary peptide delivery technology, CTI-1601 carries the molecule from the intravascular space across the cell membrane and into the mitochondria where the CPP and the mitochondrial targeting sequence are cleaved off to yield mature FXN. According to our LRMR split history records, Larimar Therapeutics has had 1 split. | |
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Larimar Therapeutics (LRMR) has 1 split in our LRMR split history database. The split for LRMR took place on May 29, 2020. This was a 1 for 12 reverse split, meaning for each 12 shares of LRMR owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 83.3333333333333 share position following the split.
When a company such as Larimar Therapeutics conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the LRMR split history from start to finish, an original position size of 1000 shares would have turned into 83.3333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Larimar Therapeutics shares, starting with a $10,000 purchase of LRMR, presented on a split-history-adjusted basis factoring in the complete LRMR split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
06/20/2014 |
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End date: |
04/25/2024 |
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Start price/share: |
$237.60 |
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End price/share: |
$6.33 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-97.34% |
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Average Annual Total Return: |
-30.78% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$266.39 |
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Years: |
9.85 |
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Date |
Ratio |
05/29/2020 | 1 for 12 |
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