Presurance Holdings, Inc. Announces 1-for-7 Reverse Stock Split
Rhea-AI Summary
Presurance Holdings (Nasdaq: PRHI) approved a 1-for-7 reverse stock split of its common stock, effective 5:00 p.m. ET on June 1, 2026. Trading on a split-adjusted basis begins June 2, 2026, and the stock will continue on Nasdaq under symbol PRHI.
The split aims to help meet Nasdaq continued listing requirements. Every 7 shares will convert into 1 share, with no change to par value or 100 million authorized shares. Outstanding shares will decrease from about 26.2 million to about 3.7 million. Fractional shares will be rounded down and paid in cash.
Positive
- Reverse split reduces outstanding shares from approximately 26.2 million to 3.7 million
- Action is intended to help Presurance meet Nasdaq continued listing requirements
- Authorized share count remains at 100 million, preserving capital structure flexibility
Negative
- Existing shareholders’ positions are consolidated at a 1-for-7 ratio
- Fractional shares are rounded down, with holders receiving cash instead of additional stock
- Conversion and exercise prices for stock options and warrants increase proportionally
News Market Reaction – PRHI
In the May 28 session, PRHI declined 7.03%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.6% during that session. Argus tracked a trough of -10.6% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 13 | Q1 2026 earnings | Neutral | +0.0% | Higher net income but lower premiums as company exits commercial lines. |
| Mar 27 | Q4 2025 earnings | Negative | -11.1% | Large net loss and adjusted operating loss with declining gross written premiums. |
| Feb 27 | Rights offering close | Positive | +1.4% | Completion of rights offering raising gross proceeds of $14,000,000. |
| Feb 06 | Rights offering launch | Negative | -4.5% | Announcement of rights offering terms including share purchase rights at $1.00. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings and capital-raising news have generally seen price reactions aligned with the news tone.
Over the past few months, Presurance reported mixed financial results and executed a significant capital raise. Q4 2025 showed a large net loss, followed by improved Q1 2026 net income alongside lower premiums and better combined ratios. The company also completed a rights offering that raised $14,000,000 to redeem preferred stock and for general purposes. This reverse stock split follows those actions and addresses listing requirements while prior events focused on earnings stabilization and balance sheet strengthening.
Key Terms
reverse stock split financial
nasdaq capital market financial
par value financial
restricted stock units financial
stock options financial
warrants financial
cusip regulatory
proxy statement regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
TROY, Mich., May 28, 2026 (GLOBE NEWSWIRE) -- Presurance Holdings, Inc. (Nasdaq: PRHI) (“Presurance” or the “Company”) today announced a 1-for-7 reverse stock split of its common stock, effective at 5:00 p.m. Eastern Time on June 1, 2026. Beginning on June 2, 2026, the common stock will trade on The Nasdaq Capital Market ("Nasdaq") on a split adjusted basis.
At the Company's annual meeting of stockholders on June 3, 2025, the stockholders approved a proposal to amend the Company's Second Amended and Restated Articles of Incorporation, to effect a reverse split of the Company's outstanding common stock at a ratio in the range of 1-for-2 to 1-for-12 to be determined at the discretion of the Company's Board of Directors, whereby each outstanding 2 to 12 shares would be combined, converted and changed into one share of common stock, to enable the Company to comply with the Nasdaq's continued listing requirements. Subsequently, the Company's Board of Directors approved the reverse split at a ratio of 1-for-7. As a result of the reverse stock split, every 7 shares of the Company's common stock issued and outstanding will be automatically converted into one share of common stock, with no change in the par value per share or authorized number of shares of common stock.
Upon effectiveness, the reverse stock split will cause a reduction in the number of shares of common stock outstanding and issuable upon the conversion of the Company's outstanding restricted stock units, stock options and warrants in proportion to the ratio of the reverse split, and will cause a proportionate increase in the conversion and exercise prices of such stock options and warrants. Any fraction of a share of common stock that would be created as a result of the reverse stock split will be rounded down to the next whole share and the stockholder will receive cash equal to the market value of the fractional share, determined by multiplying such fraction by the closing sales price of the Company's common stock as reported on Nasdaq on the last trading day before the reverse stock split becomes effective (on a split-adjusted basis).
The Company's common stock will continue to trade on Nasdaq under the symbol "PRHI." The new CUSIP number for the common stock following the reverse split is 20731J 409.
The number of authorized shares of the Company's common stock will remain at 100 million, while the number of outstanding shares will be reduced from approximately 26.2 million to approximately 3.7 million.
Additional information about the reverse stock split can be found in the Company's definitive proxy statement filed with the Securities and Exchange Commission on May 9, 2025, a copy of which is also available on the Company's website under the Investors & News page.
About Presurance Holdings
Presurance Holdings, Inc. is a Michigan-based property and casualty holding company. Through its subsidiaries, the Company provides specialty insurance coverage with a focus on disciplined growth and long-term value creation. The Company trades on the Nasdaq Capital Market under the symbol PRHI. Additional information can be found on the Company’s website at ir.PREHLD.com.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include the Company’s expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our Annual Report on Form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 27, 2026, and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this press release speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.
For Further Information:
Jessica Gulis, 248.509.9202
ir@prehld.com
