Connexa Sports Technologies Inc. Announces 1-For-40 Reverse Split
Portfolio Pulse from Benzinga Newsdesk
Connexa Sports Technologies Inc. (NASDAQ:CNXA) has announced a 1-for-40 reverse stock split of its outstanding shares of common stock, effective from September 22, 2023. The move is part of the company's plan to regain compliance with the minimum bid price requirement of $1.00 per share for continued listing on The Nasdaq Capital Market. The reverse split will reduce the number of outstanding common stock from approximately 29.5 million shares to around 740,000 shares.
September 22, 2023 | 3:51 pm
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Connexa's reverse stock split is aimed at boosting the per-share price to meet Nasdaq's minimum bid price requirement. This could potentially attract more institutional investors, but it also indicates that the company has been struggling to maintain its share price.
A reverse stock split reduces the number of shares in circulation, which can increase the per-share price. This can make the stock more attractive to institutional investors who may have policies against buying stocks below a certain price. However, it also often indicates that a company has been struggling to maintain its share price. The impact on the stock price in the short term is uncertain, hence the neutral score.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100