Shares of ABVC Biopharma Inc (NASDAQ: ABVC) are on fire this morning.
The stock jumped nearly 300% on Monday as retail traders on StockTwits picked ABVC Biopharma as their next favourite.
ABVC’s trading volume is up significantly
The sharp increase from $2.55 a share to $9.94 a share fuelled ABVC’s market cap that now stands at $210 million. More than 50 million shares of the California-based company have already been traded on Monday versus its daily trading volume of roughly 1.7 million only.
The meme stocks phenomenon started earlier this year with GameStop Corp and AMC Entertainment. While many thought of it as “transitory”, individual investors continue to remind that it’s not, with the biotech firm being their latest target.
What else could have contributed to the rally?
ABVC Biopharma plans on selling $50 million worth of its shares, as per a recent regulatory filing. It is conceivable that investors might be responding positively to the news of a share sale, the date of which has not been disclosed yet.
On top of that, the U.S. company said last week that the Taiwanese regulator allowed it to initiate its Phase II study for ABV-1505 in people with Attention-Deficit Hyperactivity Disorder (ADHD). That might have also contributed to inviting investor confidence that boosted the stock this morning.
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