Volcon Announces 1-For-5 Reverse Stock Split, Will Open For Trading On The Nasdaq Capital Market On October 16, 2023 On A Post-Split Basis
Portfolio Pulse from Benzinga Newsdesk
Volcon Inc. (NASDAQ:VLCN) has announced a 1-for-5 reverse stock split, effective from October 13, 2023. Post-split trading will commence on The Nasdaq Capital Market on October 16, 2023. The reverse split will reduce the number of outstanding shares from approximately 33.55 million to around 6.71 million, while the number of authorized shares will remain at 250 million.
October 13, 2023 | 1:30 pm
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Volcon's 1-for-5 reverse stock split will reduce the number of outstanding shares from 33.55 million to 6.71 million. This could potentially increase the stock's price, but it may also indicate underlying issues with the company's performance.
A reverse stock split reduces the number of shares in circulation, which can increase the price per share. However, companies often resort to this strategy when they are struggling to maintain minimum bid price requirements. Therefore, while the stock price may increase in the short term, it could also be a sign of underlying issues with the company's performance.
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