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Phunware (NASDAQ:PHUN) witnesses a dramatic descent on Friday following the announcement of a 1-for-50 reverse stock split.
The company opted for this reverse split to elevate the share price and curb the risk of delisting from the Nasdaq.
The primary issue plaguing PHUN stock is its scant trading value. The stock wrapped up Thursday’s trading at a mere 25 cents, significantly below the $1 minimum bid price mandated for exchange listing.
Phunware intends to implement the reverse split after the markets close on Feb. 26. Consequently, when trading commences on Feb. 27, the shares will be listed on a split-adjusted basis under the PHUN ticker but will sport a new CUSIP number – 71948P 209.
Implications for PHUN Stock
The reverse stock split will consolidate every 50 shares of PHUN into one, effectively boosting Phunware’s share price without affecting its market capitalization, culminating in approximately 8 million outstanding shares post the split.
As of Friday morning, PHUN stock is down by 22.5%, witnessing a trade of over 76 million shares. Notably, the daily trading volume still overshadows the average of 117 million shares.
Curious investors eager for the latest market buzz are welcome to stay tuned!
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Further Stock Market Intel for Friday
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On the date of publication, William White held no positions, directly or indirectly, in the securities discussed in this article. The views expressed here solely reflect the writer’s perspective, in line with the InvestorPlace.com Publishing Guidelines.
