To keep its listing on the New York Stock Exchange, WeWork is pressing forward with a 1-for-40 reverse stock split.
After shares of the workspace-sharing company dropped below an average of $1 over a 30-day trading period in the spring, the NYSE sent a notice to the company.
Since its dazzling launch in 2021, the value of the company’s shares has plummeted. On Friday, it fell 14% before the opening bell, to 13 cents per share.
WeWork issued a warning earlier this month that there was “substantial doubt” over the New York firm’s “ability to continue as a going concern—accounting jargon for having the resources necessary to function and stay in business.
WeWork cited a number of issues for the coming year, including a rise in member attrition, financial losses, and a need for cash.
Every 40 shares an investor currently has will be converted into one share following the split.
According to WeWork Inc., the reverse stock split will go into effect on September 1st. At the beginning of trading on September 5, its Class A stock will begin trading on a post-split basis.
The business doesn’t anticipate any effects from the reverse stock split on its ongoing or upcoming operations.
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