1. WKHS implemented a 1-for-12 reverse stock split to increase share price. 2. Outstanding shares reduced from 26 million to about 2.17 million. 3. The reverse split aims to meet Nasdaq's minimum price requirements. 4. Post-split trading began, but shares fell by 18.48% to $7.64. 5. No assurance that the reverse split will meet Nasdaq requirements.
FAQ
Why Bearish?
The post-split decline signals market skepticism regarding WKHS’s stability, reminiscent of past splits leading to further declines in stock prices among struggling firms.
How important is it?
The reverse stock split is a critical event influencing WKHS’s stock behavior and investor perception quickly.
Why Short Term?
Initial reactions to reverse splits often impact stock price rapidly, and WKHS's significant drop indicates immediate investor concerns.