ECD Automotive Design Announces 1-for-5 Reverse Stock Split

Rhea-AI Summary

ECD Automotive Design (NASDAQ: ECDA) will implement a 1-for-5 reverse stock split effective at market open on December 26, 2025. The company said post-split shares will continue trading under ECDA on the Nasdaq Capital Market with new CUSIP 27877D302. The split will reclassify every five pre-split shares into one post-split share, reducing outstanding shares from approximately 6,925,006 to approximately 1,385,002. The board set the final ratio after shareholder approval on July 22, 2025. The action is intended to raise the per-share trading price to meet Nasdaq's $1.00 minimum bid requirement. Outstanding stock options and RSUs will be proportionally adjusted and certificated-shareholders will receive exchange instructions from Continental Stock Transfer and Trust.

Positive

• Intended to meet Nasdaq $1.00 minimum bid requirement on Dec 26, 2025
• Outstanding shares reduced from ~6,925,006 to ~1,385,002 (1-for-5)
• Shares will continue trading on Nasdaq under ECDA with new CUSIP 27877D302

Negative

• Reverse split reflects prior sub‑$1 bid price concern requiring corrective action
• Fractional shares will be rounded up, which may slightly increase post-split outstanding shares

Key Figures

Reverse split ratio 1-for-5 Common stock reverse split effective Dec 26, 2025

Pre-split shares 6,925,006 shares Outstanding common stock before reverse split

Post-split shares 1,385,002 shares Outstanding common stock after reverse split

Nasdaq minimum bid $1.00 Minimum bid price requirement under Rule 550(a)(1)

Effective date December 26, 2025 First trading day on split-adjusted basis

New CUSIP 27877D302 CUSIP for post-split common stock

Current price $0.195 Price before reverse split announcement context

52-week range $0.1903–$42.00 Pre-news 52-week low and high

Market Reality Check

$0.1950 Last Close

Volume Volume 373,873 is 0.18x the 20-day average of 2,097,598, indicating subdued trading ahead of the split. low

Technical Shares at $0.195 are well below the 200-day MA of $9.58 and 99.54% under the 52-week high of $42.00.

Peers on Argus

ECDA was down 4.78% while peers showed mixed performance, with EVTV up 25.55%, AYRO up 7.35%, and CJET and FLYE modestly negative, suggesting this reverse split news was company-specific rather than a sector-driven move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 12	Operational agreement	Positive	-1.0%	Factory utilization deal expected to add units and improve fixed-cost absorption.
Dec 10	Community project	Positive	-20.4%	Support for restoration project and brand-building community engagement initiative.
Nov 20	Earnings report	Negative	-2.5%	Q3 results with revenue decline, gross loss, and higher operating expenses.
Nov 20	Product showcase	Neutral	-2.5%	Announcement of a bespoke Defender 110 build highlighting customization capabilities.
Nov 12	Crypto strategy	Neutral	-23.8%	Engagement of Arca Labs for operational support on Bitcoin treasury initiative.

Pattern Detected

Recent news, including operational and community initiatives, often coincided with negative price reactions, even when the underlying announcements were neutral or positive.

Recent Company History

Over the past two months, ECDA reported weaker Q3 2025 operating results with a gross loss and going-concern language, while also outlining cost reductions and diversification efforts. The company pursued a Bitcoin treasury strategy and additional project work via a regional 4x4 collaboration. Despite community-focused and product announcements, shares reacted negatively. Today’s reverse split, aimed at meeting Nasdaq’s $1.00 bid requirement, follows a prior large reverse split and ongoing efforts to stabilize operations and listing status.

Market Pulse Summary

The stock is dropping -15.4% following this news. A negative reaction despite the technical aim of restoring compliance fits the pattern of prior announcements that coincided with declines, including the earlier reverse split and Bitcoin treasury steps. Pre-announcement, the stock traded near its 52-week low and far below its 200-day MA, reflecting existing stress.

Key Terms

reverse stock split financial

"announced that it will implement a 1-for-5 reverse stock split of its issued"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

nasdaq capital market regulatory

"ECD common stock will remain on the Nasdaq Capital Market and begin trading"

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

cusip financial

"under the Company’s existing trading symbol “ECDA,” with the new CUSIP number 27877D302"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

minimum bid price requirement regulatory

"to satisfy the $1.00 minimum bid price requirement for continued listing"

A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.

AI-generated analysis. Not financial advice.

KISSIMMEE, Fla., Dec. 22, 2025 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (“ECD” or the “Company”) (NASDAQ: ECDA), the world’s largest Land Rover and Jaguar restoration company known for its custom luxury builds, including bespoke Defenders, Range Rovers, Jaguar E-Types, Ford Mustangs and Toyota FJs, announced that it will implement a 1-for-5 reverse stock split of its issued and outstanding common stock (“Reverse Stock Split”), effective at market opening time on December 26, 2025. ECD common stock will remain on the Nasdaq Capital Market and begin trading on a split-adjusted basis when the markets open on December 26, 2025, under the Company’s existing trading symbol “ECDA,” with the new CUSIP number 27877D302.

The Reverse Stock Split was previously approved by stockholders at the Company’s annual meeting of stockholders held on July 22, 2025, with the final ratio determined by the Company’s Board of Directors. The Reverse Stock Split is intended to increase the per share trading price of ECD’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market (Rule 550(a)(1)).

As a result of the Reverse Stock Split, every five pre-split shares of common stock outstanding will automatically be reclassified and combined into one share of common stock. This will reduce the number of outstanding shares of ECD’s common stock from approximately 6,925,006 shares to approximately 1,385,002 shares. The Reverse Stock Split will not change the number of authorized shares of the company’s common stock or the par value of the common stock. Proportional adjustments will be made to the number of shares of common stock issuable upon exercise of the company’s outstanding stock options and restricted stock units, as well as the applicable exercise price of the stock options.

Shareholders holding their shares electronically in book-entry form are not required to take any action to receive the post-split shares. Shareholders who hold certificated shares will receive instructions from Continental Stock Transfer and Trust, the Company’s transfer agent who is acting as the exchange agent for the Reverse Stock Split. No fractional shares will be issued as a result of the Reverse Stock Split. Stockholders who would otherwise be entitled to a fractional share will instead have their fractional share rounded up to the nearest whole share.

Additional information regarding the Reverse Stock Split can be found in the Proxy Statement filed with the SEC.

About ECD Auto Design

ECD, a public company trading under ECDA on the Nasdaq, is a creator of restored luxury vehicles that combines classic English beauty with modern performance. Currently, ECD restores Land Rover Defenders, Land Rover Series IIA, the Range Rover Classic, the Jaguar E-Type and we have recently added Ford Mustang and Toyota FJ. Historically, each vehicle produced by ECD was fully bespoke, a one-off that is designed by the client through an immersive luxury design experience and hand-built from the ground up in 2,200 hours by master-certified Automotive Service Excellence (“ASE”) craftsmen. The Company was founded in 2013 by three British “gear heads’ whose passion for classic vehicles is the driving force behind exceptionally high standards for quality, custom luxury vehicles. ECD’s global headquarters, known as the “Rover Dome,” is a 100,000-square-foot facility located in Kissimmee, Florida that is home to 87 staff with 67 talented craftsmen and technicians, who hold a combined 66 ASE and three master level certifications. ECD has an affiliated logistics center in the U.K. where its seven employees work to source and transport 25-year-old work vehicles back to the U.S. for restoration. For more information, visit www.ecdautodesign.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “attempting,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 31, 2024 with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.

Investor Relations
investorrelations@ecdautodesign.com

FAQ

What is the effective date of ECD Automotive Design's 1-for-5 reverse stock split (ECDA)?

The reverse stock split is effective at market open on December 26, 2025.

How many ECD shares will be outstanding after the 1-for-5 reverse split?

Outstanding shares will fall from approximately 6,925,006 to approximately 1,385,002 following the 1-for-5 split.

Will ECD (ECDA) remain listed on Nasdaq after the reverse stock split?

Yes. ECD common stock will remain on the Nasdaq Capital Market and trade under ECDA with a new CUSIP 27877D302 on December 26, 2025.

Why is ECD Automotive Design doing a 1-for-5 reverse split (ECDA)?

The company said the reverse split is intended to increase the per-share trading price to satisfy Nasdaq's $1.00 minimum bid requirement.

Do ECD stock options and restricted stock units change because of the reverse split?

Yes. The number of shares issuable on outstanding stock options and restricted stock units and the exercise prices will be proportionally adjusted.

What should certificated ECDA shareholders do to receive post-split shares?

Certificated shareholders will receive instructions from Continental Stock Transfer and Trust, the company's transfer agent and exchange agent.