Greenwave Technology (NASDAQ: GWAV) stock plummeted during intraday trading Wednesday after the company announced a reverse stock split to regain Nasdaq Compliance.
Greenwave Technology has announced its intention to execute a 1-for-150 reverse stock split of its common stock, with a par value of $0.001 per share. The reverse stock split will take effect at 5:00 p.m. Eastern Standard Time on Friday, May 31, 2024.
Following the split, the Common Stock will continue trading on The Nasdaq Capital Market under the symbol GWAV, with trading on a reverse split-adjusted basis commencing when the market opens on Monday, June 3, 2024. The new CUSIP number for the Common Stock post-split will be 57630J 403.
This move will reduce the number of outstanding shares of Common Stock from 1,132,490,847 shares, as of May 31, 2024, to approximately 7,549,939 shares, with adjustments made for fractional shares.
The primary objective behind the reverse stock split is to elevate the per-share trading price of the Common Stock, aiming to restore compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.
This development follows Greenwave’s recent actions to retire its convertible debt and preferred shares. In a proactive move, the company has eliminated $35.2 million in debt since the onset of 2024, including $17.2 million held by the Company’s Chairman and CEO.
With a cleaner balance sheet, the firm anticipates expanding its operations in the coming weeks. The company forecasts robust revenue growth in 2024, targeting approximately $40 million, driven by processing volumes in steel and copper.
Greenwave Technology (NASDAQ: GWAV) Stock Reaction
On Wednesday, GWAV stock plunged 37.15%, closing at $0.05, marking a 16.13% decrease for the week. The trading volume was 676,151,872 shares, significantly higher than the average daily volume of 170.91 million.
