Cenntro Announces 1-for-60 Reverse Stock Split to Regain Nasdaq Compliance
Cenntro Announces 1-for-60 Reverse Stock Split to Regain Nasdaq Compliance
Key Highlights
- Reverse Stock Split Ratio: 1-for-60
- Effective Date: April 13, 2026 (market open)
- Trading Symbol: Remains as “CENN”
- New CUSIP Number: 150964302
- Purpose: To regain compliance with Nasdaq’s minimum \$1.00 bid price requirement
- Outstanding Shares Reduced: From approximately 87.9 million to 1.47 million
- No Fractional Shares Issued: Fractional interests will be rounded up to the next whole share
Details of the Announcement
Cenntro Inc. (NASDAQ: CENN), a leading developer of electric commercial vehicles, announced a significant corporate action—a 1-for-60 reverse stock split of its outstanding common stock. The split will take effect when the market opens on April 13, 2026. This adjustment is designed to help the company regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum \$1.00 bid price per share for continued listing on the Nasdaq Capital Market.
After the reverse split, the company’s common stock will continue to trade under the symbol “CENN,” but with a new CUSIP number: 150964302. The reverse split will uniformly affect all holders of Cenntro’s common stock. Importantly, shareholders’ percentage ownership in the company will remain unchanged, except where rounding up occurs due to fractional shares.
Impact on Shareholders
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Share Count Reduction: The number of issued and outstanding shares will be drastically reduced from approximately 87,912,831 to about 1,465,214. This is a major consolidation of shares and could have a significant impact on share price by increasing the per-share value, though there is no guarantee of this effect.
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Fractional Shares: No fractional shares will be issued. Any fractional share that results from the split will be rounded up to the next whole share, which may provide a minor benefit to some shareholders.
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Options, Warrants, and Preferred Stock: All existing options, warrants, convertible preferred stock, and stock awards will be equitably adjusted in accordance with the reverse split ratio, maintaining their value on a split-adjusted basis.
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Action Required: Shareholders holding shares through brokers or in “street name” do not need to take any action. Those holding physical certificates may receive instructions from the company’s transfer agent, Continental Stock Transfer & Trust Company, but exchanging certificates is not required.
Significance & Potential Price Sensitivity
The reverse stock split is a price-sensitive action that could have a direct impact on CENN’s share price. While the split itself does not change the overall market capitalization, it increases the share price proportionally by reducing the share count, making the stock compliant with Nasdaq’s minimum price rule. However, the company cautions that there can be no assurance that this action will enable Cenntro to regain or maintain compliance in a timely manner.
Investors should also note that such reverse splits are sometimes viewed negatively by the market, as they are often used by companies facing delisting risks. This could create volatility in the stock price in the near term.
About Cenntro
Cenntro is a globally oriented designer and manufacturer of purpose-built electric commercial vehicles (ECVs), with a product range covering class 1 to class 4 commercial trucks. The company is advancing its capabilities in battery technology, powertrain, and smart driving (autonomous) technologies, aiming to build a competitive supply chain and service network worldwide. For more information, visit www.cenntroauto.com.
Forward-Looking Statements
The announcement includes statements that are forward-looking in nature, including expectations regarding Nasdaq compliance, business growth, and technological advancements. These statements are subject to risks and uncertainties, and actual results may differ from those projected. Investors are urged to review Cenntro’s filings with the SEC, especially the “Risk Factors” section in the latest Annual Report on Form 10-K and subsequent Quarterly Reports.
Company Contact Information
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. The author and publisher are not responsible for any losses related to the information provided above.
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