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Arcimoto (FUV) Stock Sinks on Reverse Stock Split Plans

  • Arcimoto (FUV) stock is slipping after revealing reverse stock split plans.
  • This has the company seeking approval for the action in an upcoming shareholder meeting.
  • Arcimoto wants to hold a reverse stock split to increase its share price.
A magnifying glass zooms in on the logo for Arcimoto, Inc. (FUV)

Source: Pavel Kapysh / Shutterstock

Arcimoto (NASDAQ:FUV) stock isn’t doing so hot on Wednesday after the company revealed plans for a reverse stock split.

Specifically, the electric vehicle (EV) company intends to seek shareholder approval for a split during an upcoming meeting. That meeting is set for Oct. 28 and will cover other matters that Arcimoto needs approval for.

Sticking to the reverse stock split, Arcimoto wants approval from shareholders to consolidate its outstanding shares. This has the company aiming for a reverse stock split in the range of one-for-five to one-for-twenty.

FUV Stock: Why a Reverse Stock Split?

Arcimoto is seeking a reverse stock split to keep its shares above the $1 minimum price needed to remain listed on the Nasdaq. The company initially adopted this plan when its shares were still trading above the $1 mark. However, as of this writing, shares currently sit at 87 cents each.

Arcimoto wants to avoid any potential delisting for a variety of reasons. First off, it would damage the EV company’s image. The company also notes that a delisting could affect liquidity and weaken investor morale.

Investors aren’t reacting well to the reverse stock split news today. As of this writing, heavy trading has some 1 million shares of FUV stock on the move. That’s above the daily average trading volume of about 814,000 shares.

FUV stock is down 3.5% as of Wednesday afternoon.

Investors looking for all of the latest stock market news are in luck!

We’ve got all of the latest stock market news traders need to know about for Wednesday! That includes what’s happening with shares of Polestar (NASDAQ:PSNY), Cameco (NYSE:CCJ) and Lucid (NASDAQ:LCID) stock today. You can catch up on all of this news at the links below!

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not hold (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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/arcimoto-fuv-stock-sinks-on-reverse-stock-split-plans/.

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