The embattled company, renowned for its co-working spaces, has outlined its intention to execute a 1-for-40 reverse stock split of its existing shares, signifying that every 40 shares of WeWork stock will be consolidated into one single share.
This reverse stock split has been initiated as an attempt to revive WeWork’s ailing stock price and safeguard its shares from potential delisting. According to NYSE regulations, stocks must maintain a minimum closing price of $1 to remain listed. In the event that a stock persists below this threshold for a prolonged period, the exchange retains the authority to delist it.
The stock value of WeWork has experienced a significant decline since the beginning of the year. Year-to-date, the stock has plummeted by 90%, and this downward trajectory persisted on Friday, closing just above 14 cents.