NEXI Stock Fans, Mark Your Calendars for Jan. 18

 

• Shares of immunotherapy specialist NexImmune (NEXI) are skyrocketing on Wednesday.
• Management seeks to dissolve the company at a meeting on Jan. 18.
• A short squeeze in NEXI stock appears to have caught short traders off guard.

Inexplicably, shares of embattled immunotherapy specialist NexImmune (NASDAQ:NEXI) are skyrocketing more than 190% despite efforts to dissolve the business. An earlier attempt to vote on the liquidation and dissolution of the biotechnology enterprise failed due to a lack of quorum. Given the uncertainty over the company’s future, a short squeeze in NEXI stock may be what’s materializing today, thus catching bearish traders off guard.

On Dec. 21, 2023, NexImmune adjourned its special meeting to close the business. However, according to the accompanying Form 8-K disclosure, no business was conducted to allow time to achieve a quorum. As a result, a new meeting will take place on Jan. 18 of this year at 10:00 a.m. Eastern. Further, the format will be virtual, not in person, thus potentially facilitating greater participation.

Leading up to the special meeting, NEXI stock is drawing much attention, although not for encouraging reasons. On the first day of December, exchange operators at the Nasdaq pulled the circuit breakers on NexImmune shares. The reason code cited for the action was listed as T12, a cessation of trading “pending receipt of additional information.”

Nasdaq certainly had reason to be skeptical about the dramatic rise of NEXI stock back then. Just the month prior, management had disclosed that it laid off “substantially all” its employees.

Short Squeeze Likely Fueled the Rise of NEXI Stock

Now, recent history is repeating itself, with NEXI stock shooting up more than 190% at the time of this writing. Thanks to the surge of the meme trading phenomenon, it’s natural to assume that a short squeeze may be influencing today’s proceedings. And that may be exactly what’s going on, although the data initially presents a deceptive picture.

According to Fintel, the short interest of NEXI stock sits at 4.96% of its float. While this metric indicates bearish traders borrowing shares for shorting activities, the figure itself is relatively unremarkable. Investopedia notes that short interest above 10% is typically considered “fairly high” while anything above 20% is considered “extremely high.”

https://investorplace.com/2024/01/dear-nexi-stock-fans-mark-your-calendars-for-jan-18/