Nikola Corporation (NASDAQ: NKLA) stock plummeted during intraday trading Thursday after the board approved a 1-for-30 reverse stock split.
Nikola’s Board of Directors has given the green light for a 1-for-30 reverse stock split of NKLA shares. This decision follows shareholder approval for a split ranging from 1-for-10 to 1-for-30 at the annual meeting earlier this month.
The reverse stock split will consolidate every 30 shares of NKLA stock into a single share. This move will significantly decrease the authorized shares of NKLA stock from 1.6 billion to 1 billion shares.
Following the split, the shares will adopt a new CUSIP number, “654110303,” while keeping the same ticker symbol.
The primary objective behind the reverse stock split is to increase Nikola’s share price. NKLA stock trades around 34 cents per share, below the Nasdaq’s minimum bid price requirement of $1 to maintain the listing.
The company has scheduled the reverse stock split to take effect after markets close on June 24. Nikola shares will commence trading on a split-adjusted basis when markets reopen on Tuesday.
Nikola (NASDAQ: NKLA) Stock Price Action
On Thursday, NKLA stock plunged 31.46%, closing at $0.3296, marking a 34.62% decrease for the week. The trading volume was 269,829,120 shares, significantly higher than the average daily volume of 91.89 million.
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