HomeFinancial MarketsWeWork Announces 1-for-40 Reverse Stock Split in Efforts to Avoid Being Delisted...

WeWork Announces 1-for-40 Reverse Stock Split in Efforts to Avoid Being Delisted From NYSE

Coworking spaces provider WeWork announced on Friday that it would initiate a 1-for-40 reverse stock split. The company’s decision comes as a result of plummeting stock and concerns about being delisted from the New York Stock Exchange (NYSE).

WeWork recently shared concerns about its ability to continue operating, which caused its shares to sink below $0.20 per share. The stock has been trading below $1 since March due to the company’s challenging financial situation and loss of customers.

Back in April, NYSE sent a warning to WeWork that its stock is facing a threat of being delisted due to diminished value. The company said at the time that it would make an effort to avoid such a scenario.

With the reverse stock split, WeWork aims to boost the value of its shares. Shareholders will receive one share for every 40 shares they hold, with the new share trading at a higher price. The split will come into action on September 1, with the new shares starting to trade on September 5.

WeWork’s stock reached an all-time low of $0.12 per stock early on Friday but bounced back to close at $0.14 by the end of the day. The company’s shares are 90% down year-to-date.

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