Cenntro Electric Group Announces 1-For-10 Reverse Stock Split To Regain Nasdaq Compliance
Portfolio Pulse from Benzinga Newsdesk
Cenntro Electric Group Limited (NASDAQ:CENN) announced a 1-for-10 reverse stock split to comply with Nasdaq's minimum bid price requirement. The split is set for December 1, 2023, to meet the December 18 deadline. This action will reduce the number of outstanding shares from about 304.4 million to approximately 30.4 million. The split will not change stockholders' percentage ownership, except for adjustments due to fractional shares, which will be rounded up to whole shares. The par value remains unchanged, and all derivatives will be adjusted accordingly.
November 29, 2023 | 5:27 pm
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Cenntro Electric Group's reverse stock split aims to regain compliance with Nasdaq's minimum bid price rule. The reduced number of shares may lead to increased volatility and potentially higher share prices in the short term.
Reverse stock splits are often used by companies to lift share prices to meet exchange listing requirements. While this does not fundamentally change the company's value, it can lead to a perception of increased value and reduced supply of shares, which might drive up the price in the short term. However, the long-term impact depends on the company's performance and investor sentiment.
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