U Power Limited (NASDAQ: UCAR) stock soared over 14% in intraday trading Monday, driven by anticipation of its upcoming reverse stock split later this week.
U Power (UCAR) has announced plans to implement a reverse stock split, consolidating 100 shares of UCAR into a single share of stock, effective when markets open on Wednesday. Despite the consolidation, the stock will retain the UCAR ticker symbol but will be assigned a new CUSIP number: G9520U116.
The shareholders of U Power approved the decision for this reverse stock split in a special meeting held in late March. The company has guaranteed a seamless transition for its shareholders by declaring that the reverse split will not result in the issuance of any fractional shares.
The initiation of the reverse stock split by U Power follows a delisting notice the company received in February. The main problem was the company’s stock price, a nominal 5 cents, which endangered its listing status. The delisting notice prompted U Power to appeal and adopt a reverse stock split strategy to elevate its share price.
By implementing the reverse stock split, U Power aims to increase its stock price to around $5 per share based on its prior closing price. The company expects this consolidation will bring the stock price in line with the Nasdaq Exchange’s minimum requirement of $1 per share, thereby mitigating the risk of delisting.
U Power (NASDAQ: UCAR) Stock Price Action
UCAR stock surged 14.18% to close at $0.06 on Monday. The traders had exchanged hands with 41,432,454 (41.43 million) shares compared to the average daily trading volume of 29.84 million.
U Power Limited UCAR UCAR stock
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry.
