COSM Stock Plunged: Here's What Happened

The Situation

Cosmos Health Inc (NASDAQ: COSM) shares – a global healthcare group with proprietary lines of nutraceuticals and distribution of pharmaceuticals – plunged on Tuesday after the company announced the results of its settlement agreement. As of 11:30 PM ET, Cosmos shares dropped by 11.18%.

The Explanation

Cosmos Health Inc recently changed its name from Cosmos Holdings Inc, after announcing a 1-for-25 reverse stock split on December 15. The reverse stock split took effect on December 16.

The company reached a settlement with the pursuant, Dr. Lee Ying Chiu, Herbert, citing the terms of the Share Exchange Agreement dated on June 17, 2021 in the Massive Treasure Limited acquisition. Dr. Lee was awarded 400,000,000 shares of common stock, as he originally had 800,000,000 shares.

See the $COSM chart performance here.

The Effect

Cosmos Health Inc stocks reportedly dropped as the company announced its settlement agreement with Dr. Lee. The investors reaction happened despite the company being able to settle the lawsuit instead of losing it.

Since investors can't know for sure how the company will perform moving forward, as it recently completed its reverse stock split, it is important to focus on Cosmos' business.

See full $COSM flow at: https://unusualwhales.com/stock/COSM/flow-overview