AiRWA Inc. Announces 1-for-40 Reverse Split

AiRWA (Nasdaq: YYAI) will implement a 1-for-40 reverse stock split of its common shares, effective at the opening of trading on May 18, 2026.

Rhea-AI Summary

AiRWA (Nasdaq: YYAI) will implement a 1-for-40 reverse stock split of its common shares, effective at the opening of trading on May 18, 2026.

The split will cut outstanding shares from approximately 42,142,432 to about 1,053,561, with no fractional shares issued and rounded-up whole shares instead. Authorized shares, par value, rights and preferences remain unchanged, and YYAI will keep its ticker with a new CUSIP 831445606.

Positive

• Outstanding common shares reduced from about 42.1 million to about 1.05 million
• No fractional shares; holders receive a rounded-up whole share instead
• Authorized share count and par value per share remain unchanged
• Rights and preferences of common stock remain the same post-split
• Proportionate adjustments to equity awards and warrants help preserve economic equivalence

Negative

• None.

Argus May 14 session

-38.62% close to close Open Argus

Details

News Market Reaction – YYAI

In the May 14 session, YYAI declined 38.62%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -38.6% in the session following this news. A negative reaction despite the mechani...

Analysis

The stock dropped -38.6% in the session following this news. A negative reaction despite the mechanical nature of a 1-for-40 split fits prior patterns, where three earlier stock split announcements averaged a -30.25% move. The stock had already traded far below its $39.11 200‑day MA and 99.74% under its 52‑week high, so further weakness would have reflected longstanding pressure. Repeated reverse splits and prior equity financings may have amplified concerns about the capital structure.

Key Figures

Reverse split ratio: 1-for-40 Pre-split outstanding shares: 42,142,432 shares Post-split outstanding shares: 1,053,561 shares +5 more

Reverse split ratio

1-for-40

Announced May 18, 2026 effective date

Pre-split outstanding shares

42,142,432 shares

Common stock before 1-for-40 reverse split

Post-split outstanding shares

1,053,561 shares

Common stock after 1-for-40 reverse split

Reverse split range

1-for-40 to 1-for-800

Range of ratios approved at 2026 annual meeting

Current share price

$0.6838

Price prior to May 14, 2026 reverse split news

52-week high

$264.42

Versus current price down 99.74%

52-week low

$0.6417

Current price 6.56% above low

New CUSIP

831445606

CUSIP assigned to common stock post-split

Previous Stock split Reports

3 past events · Latest: Oct 23

Same Type 3 events

1. Oct 23

   Reverse stock split

   24h Move

   -50.6%

   1-for-50 reverse split cut outstanding shares sharply.

2. Jun 25

   Reverse stock split

   24h Move

   -21.6%

   1-for-20 reverse split to address Nasdaq bid price.

3. Jun 17

   Reverse split plan

   24h Move

   -18.6%

   Planned 1-for-20 reverse split to cure bid price notice.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, fractional shares, exchange agent, par value, +3 more

7 terms

reverse stock split financial

"it will implement a 1-for-40 reverse stock split of its outstanding shares"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

fractional shares financial

"No fractional shares will be issued. Instead, stockholders will receive a rounded up whole share"

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.

View in glossary

exchange agent financial

"ClearTrust, LLC will act as the exchange agent for the Reverse Split"

An exchange agent is a third party appointed to handle the practical steps when securities are being swapped, such as during mergers, tender offers, or restructurings. Think of it as a trusted post office that collects old shares, verifies ownership, completes required paperwork and regulatory filings, and delivers the new shares or cash to investors; its efficiency and accuracy affect how quickly and safely investors receive the value they're owed.

par value financial

"The number of authorized shares of common stock and the par value per share will remain unchanged"

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.

cusip financial

"with a new CUSIP number, 831445606"

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.

View in glossary

equity awards financial

"Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards"

Equity awards are payments to employees or directors made in the form of company stock or rights to buy stock later, serving as a way to share ownership rather than cash. For investors, they matter because they align staff incentives with company performance, can increase the number of shares outstanding over time (which can reduce each share’s claim on profits), and create compensation costs that affect reported earnings.

warrants financial

"outstanding equity awards, as applicable, and warrants, as well as to the number of shares issued"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

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Smyrna, Delaware, May 14, 2026 (GLOBE NEWSWIRE) -- AiRWA Inc. (Nasdaq: YYAI) (the “Company”) announces that, as previously approved by the stockholders of the Company, it will implement a 1-for-40 reverse stock split of its outstanding shares of common stock (the “Reverse Split”), effective at the opening of trading on May 18, 2026.

On April 17, 2026, in the 2026 annual meeting of stockholders, the stockholders approved one or more reverse stock splits of our common stock over the course of the next two years at a ratio within a range of 1-for-40 to 1-for-800, with the specific ratio and date of any such reverse stock split to be determined by the Board of Directors. The Company’s Board of Directors approved the reverse stock split at the ratio of 1-for-40.

Following the Reverse Split, every 40 shares of issued and outstanding common stock will automatically be combined and converted into one share. This consolidation will reduce the number of shares of the Company’s outstanding common stock from approximately 42,142,432 to approximately 1,053,561. No fractional shares will be issued. Instead, stockholders will receive a rounded up whole share in place of any fractional share that would have been created by the Reverse Split. ClearTrust, LLC will act as the exchange agent for the Reverse Split and will provide stockholders with a transaction statement that reflects their post-split shareholdings. The number of authorized shares of common stock and the par value per share will remain unchanged. The Company’s common stock will continue trading under the same Nasdaq ticker symbol (YYAI), with a new CUSIP number, 831445606.

The reverse stock split will not affect the number of authorized shares of Common Stock or the par value of the Common Stock. The reverse stock split will not modify any rights or preferences of the shares of the Company’s Common Stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, and warrants, as well as to the number of shares issued and issuable under the Company’s equity incentive plans. The Common Stock issued pursuant to the reverse stock split will remain fully paid and non-assessable.

About YYAI

AiRWA Inc. (Nasdaq: YYAI) is an AI-specialist company providing end-to-end full-cycle services designed to empower enterprises to transition seamlessly from raw data to intelligent applications through a closed-loop system of data generation, model refinement, and operational feedback. Through its majority-owned subsidiary, Yuanyu Enterprise Management Co., Limited, AiRWA also owns advanced patents and proprietary technology licensed to partners worldwide, enabling localized digital matchmaking and other technology solutions. The company is driving innovation in digital finance through the planned AiRWA Exchange, which will focus on the tokenization of real-world assets (RWA), particularly tokenized U.S. stocks.

YYAI Contact Information

Email: info@yuanyuenterprise.com
Website: www.yuanyuenterprise.com

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on current plans, estimates, and expectations, and involve inherent risks and uncertainties. Actual results may differ materially due to various factors, including:

• volatility related to the Company’s relatively low public float;
• the effects of prior acquisitions and divestitures on current and future business operations;
• strategic and operational uncertainties;
• risks associated with potential litigation, financing transactions, or acquisitions;
• macroeconomic, competitive, legal, regulatory, tax, and geopolitical factors; and
• other risks detailed in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2025.
  
  

Forward-looking statements speak only as of the date they are made. Neither the Company nor any other person undertakes to update any forward-looking statements, except as required by law.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the reverse stock split ratio for AiRWA (Nasdaq: YYAI) in May 2026?

AiRWA is implementing a 1-for-40 reverse stock split of its common stock. According to the company, every 40 issued and outstanding shares will automatically be combined into one share, effective at the opening of trading on May 18, 2026.

How will AiRWA's (YYAI) reverse stock split affect the number of outstanding shares?

The reverse split will reduce outstanding common shares from about 42,142,432 to approximately 1,053,561. According to AiRWA, this change affects only the share count; authorized shares and par value per share will remain the same after the transaction.

What happens to fractional shares in the AiRWA (YYAI) 1-for-40 reverse split?

Fractional shares will not be issued in the AiRWA reverse split. According to AiRWA, any position that would result in a fractional share will be rounded up, and the stockholder will receive a whole share of common stock instead.

Will AiRWA's (YYAI) Nasdaq ticker or CUSIP change after the May 18, 2026 reverse split?

AiRWA's common stock will continue trading under ticker YYAI after the split. According to the company, only the CUSIP number will change to 831445606, while the Nasdaq listing and symbol remain unchanged for investors.

Does the AiRWA (YYAI) reverse stock split change shareholder rights or preferences?

The reverse stock split will not modify rights or preferences of AiRWA common stock. According to AiRWA, only the share count and related equity award and warrant terms are adjusted proportionately, while existing rights and fully paid, non-assessable status remain intact.

How will AiRWA's (YYAI) equity awards and warrants be affected by the 1-for-40 reverse split?

AiRWA will make proportionate adjustments to equity awards and warrants following the split. According to the company, both the number of underlying shares and exercise prices will be modified so that the economic value of these instruments is preserved for holders.

Who is handling the share exchange for AiRWA's (YYAI) reverse stock split?

ClearTrust will act as the exchange agent for AiRWA's reverse split. According to AiRWA, ClearTrust will provide stockholders with transaction statements that show their updated post-split shareholdings following the 1-for-40 consolidation effective May 18, 2026.