When a company such as Cyclo 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 CYTH split history from start to finish, an original position size of 1000 shares would have turned into 10 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Cyclo Therapeutics shares, starting with a $10,000 purchase of CYTH, presented on a split-history-adjusted basis factoring in the complete CYTH split history.

About Cyclo Therapeutics

Cyclo Therapeutics is a clinical stage biotechnology company that develops cyclodextrin-based products for the treatment of disease. Co.'s primary drug candidate, Trappsol® Cyclo™ (hydroxypropyl beta cyclodextrin), is used as a treatment for Niemann-Pick Type C disease (NPC). NPC is a cholesterol metabolism disease that impacts the brain, lungs, liver, spleen, and other organs. Co. is also exploring the use of cyclodextrins in the treatment of Alzheimer's disease. Co. sells cyclodextrins and related products to the pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs. According to our CYTH split history records, Cyclo Therapeutics has had 1 split.

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