Sky Quarry Inc. Announces 1-for-8 Reverse Stock Split

Rhea-AI Summary

Sky Quarry (Nasdaq: SKYQ)/b) announced a effective 11:59 p.m. ET on March 15, 2026, with trading on a split-adjusted basis to begin March 16, 2026. The Board approved the split to increase the per-share market price and aim to regain Nasdaq's $1.00 average closing price requirement. Post-split shares outstanding are expected to be approximately 3,752,874 from 29,962,839 pre-split. No fractional shares will be issued; registered holders will have fractions rounded up and no cash will be paid in lieu.

Positive

• Reverse split aims to restore compliance with Nasdaq's $1.00 minimum average closing-price rule
• Share count reduced from 29,962,839 to approximately 3,752,874, increasing per-share price arithmetic

Negative

• Reverse split does not change authorized shares or par value, so no reduction in company capitalization
• Registered fractional shares are rounded up at no cash payment, potentially slightly increasing issued shares

News Market Reaction – SKYQ

-37.74% 2.6x vol

56 alerts

-37.74% News Effect

+64.1% Peak Tracked

-33.5% Trough Tracked

-$10M Valuation Impact

$16M Market Cap

2.6x Rel. Volume

On the day this news was published, SKYQ declined 37.74%, reflecting a significant negative market reaction. Argus tracked a peak move of +64.1% during that session. Argus tracked a trough of -33.5% from its starting point during tracking. Our momentum scanner triggered 56 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $10M from the company's valuation, bringing the market cap to $16M at that time. Trading volume was elevated at 2.6x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Reverse split ratio: 1-for-8 Par value: $0.0001 per share Nasdaq minimum price: $1.00 +5 more

8 metrics

Reverse split ratio 1-for-8 Board-approved reverse stock split of common shares

Par value $0.0001 per share Common Stock par value unchanged by reverse split

Nasdaq minimum price $1.00 Average closing price requirement cited for continued listing

Pre-split shares 29,962,839 shares Common Stock issued and outstanding before reverse split

Post-split shares Approximately 3,752,874 shares Expected issued and outstanding immediately after split

Authorized split range 1-for-2 to 1-for-25 Range approved by stockholders in November 2025

Effective time 11:59 p.m. ET, March 15, 2026 When reverse split becomes effective

Split-adjusted trading date March 16, 2026 Date shares begin trading on split-adjusted basis on Nasdaq

Market Reality Check

Price: $3.41 Vol: Volume 6,320,985 vs 20-da...

high vol

$3.41 Last Close

Volume Volume 6,320,985 vs 20-day average 1,828,628, indicating elevated trading activity. high

Technical Context lists shares trading below 200-day MA of 0.5, while still 71.44% under 52-week high.

Peers on Argus

Context flags this as stock-specific, not a sector move. Some peers like EONR sh...

3 Up 1 Down

Context flags this as stock-specific, not a sector move. Some peers like EONR show large gains (19.47%), while others such as CGBS and SLNG show double-digit declines, pointing to mixed sector action rather than a unified response to this reverse split.

Historical Context

5 past events · Latest: Jan 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Refinery upgrades	Positive	+17.5%	Completion of high-impact system upgrades at Foreland refinery.
Jan 15	Board changes	Positive	-5.0%	Appointment of three independent directors with capital markets and AI focus.
Jan 13	Power monetization	Positive	-10.6%	RFP to monetize 7 MW turbine power capacity at PR Spring facility.
Oct 22	Tokenization progress	Positive	-2.9%	Advances in RWA token and exchange development with Continuum.
Sep 30	Treasury strategy	Positive	+36.0%	Launch of digital asset treasury strategy targeting up to $100M capital.

Pattern Detected

Recent news often involved strategic or operational initiatives, with mixed price reactions: operational and strategy updates sometimes saw strong gains but also several divergences where seemingly positive news coincided with negative moves.

Recent Company History

Over the last several months, Sky Quarry announced operational upgrades at its Foreland refinery, a digital asset treasury strategy with up to $100 million in potential capital, and progress on real‑world asset tokenization targeting a large liquidity opportunity. It also sought partners to monetize 7 MW of power capacity and refreshed its board with independent directors. Price reactions ranged from about -10.6% to +36%, showing that market responses to strategic updates have been inconsistent ahead of this reverse split announcement.

Regulatory & Risk Context

Active S-3 Shelf · $1,000,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-21

$1,000,000,000 registered capacity

An effective Form S-3 shelf filed on 2025-11-21 allows Sky Quarry to offer up to $1,000,000,000 of various securities over time, with terms set in future prospectus supplements and stated uses including working capital, general corporate purposes, and possible acquisitions or investments.

Market Pulse Summary

The stock dropped -37.7% in the session following this news. A negative reaction despite the reverse...

Analysis

The stock dropped -37.7% in the session following this news. A negative reaction despite the reverse split’s goal of meeting the $1.00 Nasdaq minimum would fit a pattern where structural actions are viewed cautiously against broader financing needs. The share count shift from 29,962,839 to roughly 3,752,874 does not change fundamentals, while a $1,000,000,000 shelf and a $4,700,000 ATM program highlight ongoing capital-raising flexibility, which market participants may interpret as dilution risk when sentiment weakens.

Key Terms

reverse stock split, par value, certificate of amendment, nasdaq capital market, +4 more

8 terms

reverse stock split financial

"approved a reverse stock split (the "Reverse Stock Split") of Sky Quarry's shares"

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.

par value financial

"Common Stock, par value $0.0001 per share (the "Common Stock")"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

certificate of amendment regulatory

"The Company filed its Certificate of Amendment to the Certificate of Incorporation"

A certificate of amendment is an official filing that updates a company’s founding documents—its legal “rulebook” that sets share structure, voting rules, name and basic purpose. Think of it like changing the blueprint of a building: small changes are paperwork, big ones can alter who owns how much and who controls decisions. Investors watch these filings because they can affect share counts, voting power, dilution and company value.

nasdaq capital market regulatory

"trading on the Nasdaq Capital Market (the "Nasdaq") on a split-adjusted basis"

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 technical

"The new CUSIP number for the Common Stock following the Reverse Stock Split will be 83087C204"

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.

fractional shares financial

"No fractional shares will be issued in connection with the Reverse Stock Split."

Fractional shares are portions of a whole share of a stock or fund, allowing investors to own less than one full unit. They make it possible to invest a specific dollar amount rather than buy whole shares, like buying a slice of a pizza instead of the entire pie. For investors this lowers the cost barrier, helps with diversification, and lets you reinvest dividends or purchase expensive stocks in small, precise amounts.

book-entry technical

"stockholders who hold shares of Common Stock in book-entry form with the Company's transfer agent"

A book-entry is an electronic record that shows who legally owns a share, bond or other security instead of a paper certificate. Think of it like a bank ledger entry that tracks ownership and transfers; it makes buying, selling, dividend payments and ownership checks faster, cheaper and less risky for investors because nothing physical needs to be moved or stored.

transfer agent financial

"with the Company's transfer agent, Colonial Stock Transfer, Inc."

A transfer agent is a financial service that keeps the official record of who owns a company's shares, handles the buying and selling of those shares on paper or electronically, and issues or cancels stock certificates. Think of it as the company’s records keeper and mailroom combined—investors rely on it to make sure dividends, shareholder mailings, ownership changes, and proxy voting are processed accurately and securely, which protects ownership rights and helps prevent errors or fraud.

AI-generated analysis. Not financial advice.

03/05/2026 - 04:45 PM

WOODS CROSS, UT / ACCESS Newswire / March 5, 2026 / Sky Quarry Inc. ("Sky Quarry" or the "Company") (Nasdaq Capital Market:SKYQ), an integrated energy solutions company transforming the waste recycling industry, today announced that the Company's Board of Directors (the "Board") approved a reverse stock split (the "Reverse Stock Split") of Sky Quarry's shares of Common Stock, par value $0.0001 per share (the "Common Stock"), at a ratio of 1-for-8 (the "Reverse Stock Split Ratio"). The Company filed its Certificate of Amendment to the Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of Delaware on March 5, 2026, to implement the Reverse Stock Split. The Reverse Stock Split is expected to become effective at 11:59 p.m. Eastern Time on March 15, 2026 (the "Effective Time"), and Sky Quarry's Common Stock is expected to begin trading on the Nasdaq Capital Market (the "Nasdaq") on a split-adjusted basis at the opening of trading on March 16, 2026, under the existing ticker symbol "SKYQ".

As disclosed in the Company's Current Report on Form 8-K filed on November 5, 2025, the Company's stockholders approved the Certificate of Amendment at a special meeting of stockholders held on November 4, 2025, authorizing a reverse stock split at a ratio between 1-for-2 and 1-for-25, with the final ratio, implementation and timing to be determined by the Board in its sole discretion. The Board subsequently determined to effect the Reverse Stock Split at a ratio of 1-for-8. The primary goal of the Reverse Stock Split is to increase the per share market price of the Common Stock to regain compliance with the minimum $1.00 average closing price requirement for continued listing on the Nasdaq.

At the Effective Time, every eight (8) shares of Common Stock issued and outstanding will be automatically combined and converted into one (1) share of Common Stock. The Reverse Stock Split will not reduce the number of authorized shares of Common Stock and will not change the par value of the Common Stock. The Reverse Stock Split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the Company's shares of Common Stock, except to the extent that the Reverse Stock Split would result in fractional shares being rounded up. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 83087C204. Prior to the Reverse Stock Split, there are 29,962,839 shares of Common Stock issued and outstanding, and immediately following the Reverse Stock Split, the Company expects to have approximately 3,752,874 shares of Common Stock issued and outstanding, subject to the number of shares resulting from the rounding up of fractional shares held by registered holders.

No fractional shares will be issued in connection with the Reverse Stock Split. Instead, registered stockholders who would be entitled to receive fractional shares of Common Stock because they hold a number of shares not evenly divisible by the Reverse Stock Split Ratio shall have their fractional share rounded up to the nearest whole number of Common Stock. For those stockholders who hold shares with a brokerage firm, the Company will round up fractional shares at the participant level. No cash will be paid in lieu of fractional shares.

Registered stockholders who hold shares of Common Stock in book-entry form with the Company's transfer agent, Colonial Stock Transfer, Inc., are not required to take any action to receive post-Reverse Stock Split shares. Stockholders owning shares through an account at a brokerage firm, bank, dealer, custodian or other similar organization acting as nominee will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such nominee's particular processes, and will not be required to take any action in connection with the Reverse Stock Split. Stockholders who hold shares with a bank, broker, custodian or other nominee and who have any questions in this regard are encouraged to contact their banks, brokers, custodians or other nominees.

About Sky Quarry Inc.

Sky Quarry Inc. is an integrated energy solutions company transforming the waste recycling industry. The Company is headquartered in Woods Cross, Utah. For more information, please visit the Company's website.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, are forward-looking statements. When used in this press release, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

These forward-looking statements are based upon current expectations, estimates, projections, and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company's ability to regain compliance with the Nasdaq continued listing standards; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business and/or competitive factors; and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on March 31, 2025 (as amended), and other documents the Company has filed with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company does not undertake, and expressly disclaims, any duty to update these forward-looking statements, except as otherwise required by applicable law.

Investor and Media Contacts

Sky Quarry Inc.

Jennifer Standley
Director of Investor Relations
Ir@skyquarry.com

www.skyquarry.com

SOURCE: Sky Quarry

View the original press release on ACCESS Newswire

FAQ

What is the effective date of Sky Quarry's 1-for-8 reverse stock split (SKYQ)?

The reverse split becomes effective at 11:59 p.m. ET on March 15, 2026. According to the company, trading will begin on a split-adjusted basis at the opening on March 16, 2026, under the existing ticker SKYQ.

How many Sky Quarry (SKYQ) shares will be outstanding after the 1-for-8 reverse split?

Sky Quarry expects approximately 3,752,874 shares outstanding immediately after the split. According to the company, this follows combining every eight pre-split shares into one share from 29,962,839 pre-split shares.

Will Sky Quarry (SKYQ) issue fractional shares or pay cash for fractions in the reverse split?

No fractional shares will be issued and no cash will be paid in lieu. According to the company, registered holders will have fractional shares rounded up to the nearest whole share.

Why is Sky Quarry (SKYQ) implementing the 1-for-8 reverse stock split?

The primary goal is to increase the per-share market price to regain compliance with Nasdaq's $1.00 average closing-price requirement. According to the company, the Board selected the 1-for-8 ratio to pursue that objective.