ShiftPixy (NASDAQ:PIXY) stock is rocketing higher on Wednesday after revealing details of an upcoming reverse split.
According to a press release from the staffing solutions company, it will undergo a 1-for-24 reverse stock split at the end of the week. That will see the reverse split go into effect at 1:59:59 p.m. on Sept. 30, 2023. This will have the shares start trading on a split-adjusted basis when trading starts on Monday.
This reverse stock split will see ShiftPixy consolidate 24 four shares into a single share. That will take the company’s total number of shares issued and outstanding from 12,177,191 to 507,383.
What’s Behind the PIXY Reverse Stock Split
ShiftPixy notes that the reverse stock split is happening as a way to increase its trading price. The company is taking this action after getting a delisting notice from the Nasdaq Exchange back in June.
The problem ShiftPixy faces with delisting is its share price. The company’s stock has consistently traded below the $1 minimum bid price required to remain on the exchange. The reverse stock split allows it to increase its share price without affecting its market capitalization.
With today’s reverse stock split news, some 10 million shares of PIXY stock have changed hands. That’s already a massive leap over its daily average trading volume of about 260,000 shares. It also has PIXY stock up 162% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
