Crown Electrokinetics (NASDAQ: CRKN) stock plunged in pre-market trading Monday after the company announced a 1-for-150 reverse stock split.
Crown Electrokinetics has announced a significant corporate action: a 1-for-150 reverse stock split. This stock split will take effect on Tuesday, June 25, 2024, and trading on a split-adjusted basis will commence on the Nasdaq Capital Market under the ticker symbol “CRKN”.
The company’s Board of Directors approved the reverse stock split on June 12, 2024. Shareholder approval followed during the annual meeting on June 14, 2024.
The reverse stock split will consolidate every 150 shares of the company’s issued and outstanding common stock into a single share. The consolidation will round up any fractional shares to the nearest whole number, ensuring uniform treatment of all stockholders. It would not alter any stockholder’s percentage interest in Crown’s outstanding common stock, except for minor adjustments due to handling fractional shares.
Crown Electrokinetics has not provided specific reasons for the reverse stock split or detailed its potential impact on the company’s market position or future growth prospects. However, reverse stock splits are typically implemented to reduce the number of shares outstanding and increase the market price per share, which can enhance the stock’s appeal to investors and comply with exchange listing requirements.
Crown Electrokinetics (NASDAQ: CRKN) Stock Reaction
As of 04:39 a.m. (Eastern Time) Monday, CRKN stock traded at $0.0355, marking a 13.63% decrease compared to the previous trading session.
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