Will the split bring the stock back into Nasdaq’s $1 minimum price requirement and prevent a potential delisting?

Answer to the core question

A 1‑for‑100 reverse split will inflate the quoted price roughly ×100. In practice, Nasdaq’s $1 minimum‑price rule is satisfied as long as the post‑split share trades at or above $1 for the remainder of the compliance period (usually 180 days). Assuming TNFA’s pre‑split price is at least $0.01 – which is typical for a stock facing a $1‑price notice – the split will push the opening price into the $1‑$2 range and should clear the immediate $1‑price deficiency, thereby averting an automatic delisting. The real risk is not the mechanical compliance but whether the market can sustain that level; if investors sell aggressively on the first day, the price could dip back below $1, re‑triggering Nasdaq’s “deficiency” status and forcing the company to seek an extension or another recapitalization.

Trading implications

1. Short‑term volatility: Reverse splits often generate a sharp, short‑lived bounce because the price is multiplied, but liquidity can be thin and the bid‑ask spread widens. Expect the stock to open higher on a split‑adjusted basis, then potentially trade erratically as market participants adjust their orders. Traders looking for a quick scalp should watch the opening candle and be ready to exit on the first sign of a pullback toward $1.

2. Mid‑term outlook: The fundamental story—TNF’s clinical‑stage pipeline and cash position—remains unchanged. The split does not improve the company’s valuation; it merely reshapes the share structure. If you are a longer‑term investor, treat the split as a neutral event and focus on pipeline milestones, cash burn, and any upcoming financing. If the post‑split price stabilizes above $1 and the company meets Nasdaq’s 180‑day compliance window, the risk of forced delisting recedes, making the stock more attractive to institutions that avoid sub‑$1 equities.

Actionable take‑away

• If you already own TNFA: Hold through the split, but monitor the first two trading sessions. A post‑split price that remains comfortably above $1 (e.g., >$1.20) reduces delisting risk; a rapid slide back toward $1 may signal continued weakness and could be a cue to trim exposure.
• If you are considering a new position: Use the split as a timing cue rather than a value catalyst. Look for confirmation that the stock can hold the post‑split level (volume, tight spreads, no immediate sell‑off). Only enter if the underlying fundamentals justify the price, not simply because the $1 rule has been “fixed.”