Workhorse Group Announces 1-for-12.5 Reverse Stock Split
Rhea-AI Summary
Workhorse Group (WKHS) has announced a 1-for-12.5 reverse stock split of its authorized and outstanding common shares, effective March 17, 2025. The move aims to boost the stock price to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share, which must be maintained for at least 10 consecutive trading days before March 31, 2025.
The stock will continue trading under the symbol 'WKHS' on Nasdaq. Every 12.5 shares will automatically combine into one share, with fractional shares being rounded up to the nearest whole share. The split will not alter stockholders' percentage ownership except for minor adjustments from fractional share treatment.
Empire Stock Transfer Inc. will serve as the exchange agent, sending transaction statements to stockholders post-split. Shareholders holding shares through brokers will have their positions automatically adjusted.
Positive
- Potential to maintain Nasdaq listing compliance
- Automatic rounding up of fractional shares benefits shareholders
- No change in stockholders' ownership percentage
Negative
- Risk of failing to meet $1.00 minimum bid requirement despite reverse split
- Indicates underlying share price weakness requiring corporate action
- Reduced float and potential impact on stock liquidity
News Market Reaction
On the day this news was published, WKHS declined 26.54%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
CINCINNATI, March 12, 2025 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or the “Company”), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today announced that it will effect a 1-for-12.5 reverse stock split of its authorized shares and issued and outstanding shares of common stock, par value
The reverse stock split is intended to increase the market price of Workhorse’s common stock to regain compliance with the minimum bid price requirement for continued listing on Nasdaq, but there can be no assurance that the reverse split will have such effect. Workhorse has until March 31, 2025 to comply with this requirement and must see a closing bid price of its common stock of at least
As a result of the reverse stock split, every 12.5 shares of the Company’s common stock will automatically be combined into one share of common stock. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage ownership interest in the Company’s equity, except for immaterial adjustments that may result from the treatment of fractional shares as described below. No fractional shares will be issued in connection with the reverse stock split, and fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share.
The reverse stock split will occur automatically on the effective date of March 17, 2025, without any additional action on the part of Workhorse stockholders. Empire Stock Transfer Inc. is acting as the exchange agent for the reverse stock split and will send stockholders a transaction statement indicating the number of shares of common stock that stockholders hold after the reverse stock split. Stockholders owning shares via a broker, bank, trust, or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to such broker’s particular processes, and will not be required to take any action in connect with the reverse stock split.
About Workhorse Group Inc.
Workhorse Group Inc. (Nasdaq: WKHS) is a technology company focused on pioneering the transition to zero-emission commercial vehicles. Workhorse designs and builds its vehicles in the United States at the Workhorse Ranch in Union City, Indiana. The company’s best-in-class vehicles are designed for last-mile delivery, medium-duty operations, and a growing range of specialized applications. For more information, visit www.workhorse.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to the Company. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including but not limited to: our ability to cure any deficiencies in compliance with Nasdaq’s minimum bid price requirement or maintain compliance with other Nasdaq Listing Rules; the ability of the reverse split to allow us to regain compliance with Nasdaq’s minimum bid price requirement; our ability to obtain any additional relief necessary to regain compliance from Nasdaq or to meet applicable Nasdaq requirements for any such relief; and risks related to the substantial costs and diversion of personnel’s attention and resources due to these matters. While we are taking actions to address our non-compliance with Nasdaq’s minimum bid price requirement, there can be no assurance that we will regain compliance. Continued non-compliance or a delisting from Nasdaq would materially and adversely affect our ability to raise capital and our financial condition and business. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Media Contact:
Aaron Palash / Greg Klassen
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group
949-574-3860
WKHS@gateway-grp.com
FAQ
What is the ratio of Workhorse Group's (WKHS) reverse stock split announced in March 2025?
When will WKHS reverse stock split take effect in 2025?
What is the deadline for WKHS to meet Nasdaq's minimum bid price requirement?
How will the WKHS reverse split affect stockholder ownership percentages?
