CXApp Inc. Announces Reverse Stock Split
Rhea-AI Summary
CXApp (Nasdaq: CXAI) announced that its Board approved a 1-for-50 reverse stock split of its issued and outstanding common stock. The split is expected to become effective at 12:01 a.m. ET on August 18, 2026, with CXAI shares trading on a split-adjusted basis that same day under the existing ticker and a new CUSIP 23248B 307. The company stated the principal objective is to increase the per-share market price and support efforts to regain compliance with Nasdaq’s minimum bid-price requirement.
At effectiveness, every 50 shares of CXAI common stock will be combined into one share. Based on approximately 116,870,315 shares outstanding before the split, about 2,337,407 shares are expected afterward, subject to fractional-share treatment. Fractional positions will be rounded up to the next whole share. The reverse split applies uniformly and does not change percentage ownership, except for fractional adjustments, and does not affect the $0.0001 par value. Proportionate adjustments will be made to equity awards, plan share reserves, warrants, other rights and related exercise or conversion prices, including Public Warrants (CXAIW), whose exercise price will adjust from $11.50 to $575.00 and become exercisable for 1/50th of a share, with warrant fractional shares rounded down.
Positive
- 1-for-50 reverse stock split targeted to support Nasdaq bid-price compliance
- Share count reduction from about 116.9M to an expected 2.34M post-split
- Fractional common shares rounded up to the next whole share for holders
- Proportionate adjustments to options, equity plans and warrants maintain economic terms
Negative
- None.
Market Reaction – CXAI
Following this news, CXAI has declined 42.04%, reflecting a significant negative market reaction. Our momentum scanner has triggered 64 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $0.10. Trading volume is exceptionally heavy at 25.6x the average, suggesting significant selling pressure.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 06 | earnings call scheduling | Neutral | +14.3% | Company scheduled its second-quarter 2026 earnings call and investor forum. |
| Jul 24 | earnings scheduling | Neutral | +1.6% | Company announced the date for second-quarter 2026 financial results. |
| Jun 25 | AI platform launch | Positive | -4.3% | CXAI launched CXAI 2.0 and highlighted platform expansion and customer deployments. |
| Jun 12 | annual meeting notice | Neutral | +3.0% | Company announced its virtual-only 2026 annual shareholder meeting. |
| Jun 03 | acquisition announcement | Positive | +60.4% | CXAI agreed to acquire EngineRoom to expand revenue and recurring customer reach. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
CXAI's recent positive or informational announcements were generally followed by gains, but the AI platform launch produced a -4.25% reaction.
Key Terms
reverse stock split financial
cusip number technical
minimum bid-price requirement regulatory
public warrants financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Common stock expected to begin trading on a split-adjusted basis on August 18, 2026
PALO ALTO, CA / ACCESS Newswire / August 14, 2026 / CXApp Inc. (Nasdaq:CXAI) ("CXAI" or the "Company"), an enterprise AI software company, today announced that its Board of Directors has approved a 1-for-50 reverse stock split of the Company's issued and outstanding common stock.
The reverse stock split is expected to become effective at 12:01 a.m. Eastern Time on August 18, 2026. The Company's common stock is expected to begin trading on a split-adjusted basis when the Nasdaq Capital Market opens on August 18, 2026, under the existing trading symbol "CXAI" and a new CUSIP number, 23248B 307.
The principal objective of the reverse stock split is to increase the per-share market price of CXAI's common stock and support the Company's efforts to regain compliance with Nasdaq's minimum bid-price requirement.
CXAI's stockholders authorized the Board, at its discretion, to approve a reverse stock split at a ratio between 1-for-5 and 1-for-100 at the Company's Annual Meeting of Stockholders held on June 16, 2026. The Board subsequently approved the definitive ratio of 1-for-50.
"CXAI has evolved into a significantly broader enterprise AI company, with an expanded recurring-revenue base, greater customer reach and a growing platform for deploying AI-powered solutions across enterprise and mid-market organizations," said Khurram Sheikh, Chairman and Chief Executive Officer of CXAI. "The reverse stock split is an important step toward protecting our Nasdaq listing and establishing a more durable capital structure as we focus on integration, disciplined execution and long-term shareholder value."
Reverse Stock Split Mechanics
At the effective time, every 50 shares of CXAI common stock issued and outstanding will automatically be combined into one share of common stock.
Based on approximately 116,870,315 shares outstanding immediately before the reverse stock split, approximately 2,337,407 shares are expected to be outstanding immediately following the reverse stock split, subject to the treatment of fractional shares.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder's percentage ownership interest in the Company, except to the extent resulting from the treatment of fractional shares.
The reverse stock split will not change the par value of the Company's common stock, which will remain
Proportionate adjustments will be made, in accordance with their applicable terms, to:
Outstanding stock options and other equity awards;
Shares available for issuance under the Company's equity-incentive plans;
Outstanding warrants and other rights to acquire common stock;
The number of shares issuable under such securities; and
Applicable exercise or conversion prices.
Effect on Outstanding Warrants
The Company has outstanding warrants to purchase shares of Common Stock (the "Public Warrants"), which trade on The Nasdaq Stock Market LLC under the symbol "CXAIW." As a result of the Reverse Stock Split, in accordance with the terms of the Warrant Agreement, dated as of December 14, 2020, (i) the exercise price per share of Common Stock issuable upon exercise of the Public Warrants will increase from
Treatment of Fractional Shares
Round-up
No fractional shares will be issued in connection with the reverse stock split. A stockholder who would otherwise be entitled to receive a fractional share will have that fractional interest rounded up to the next whole share, subject to the terms approved by the Board and applicable law.
Information for Stockholders
Stockholders holding shares electronically in book-entry form or through a bank, broker or other nominee are not expected to take any action to receive their post-split shares. Their accounts will be adjusted automatically to reflect the reverse stock split, subject to the processes of their respective banks, brokers or nominees.
Registered stockholders holding physical stock certificates will receive instructions from the Company's transfer agent, Continental Stock Transfer & Trust Company, regarding the exchange of their certificates. Stockholders should not send certificates to the Company or the transfer agent until they receive specific instructions.
Additional information regarding the reverse stock split will be included in a Current Report on Form 8-K to be filed by the Company with the U.S. Securities and Exchange Commission.
About CXAI
CXAI is an enterprise agentic AI platform company focused on helping organizations improve productivity, automate workflows and enhance business performance through artificial intelligence.
The Company's platform combines operational intelligence, analytics, workplace technologies and intelligent automation to deliver measurable business outcomes across enterprise and mid-market organizations.
CXAI serves customers across technology, financial services, healthcare, media and other industries while expanding its AI capabilities through both organic growth and strategic acquisitions.
CXApp Inc.: marketing@cxapp.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.
SOURCE: CXApp Inc.
View the original press release on ACCESS Newswire