Crown Electrokinetics (NASDAQ:CRKN) stock is on the move Wednesday as investors prepare for the company’s upcoming shareholder meeting.
That meeting will take place on Dec. 22 and has holders of CRKN stock voting on a few different matters. Among them is a proposal for a 1-for-15 reverse stock split, as well as an increase of outstanding shares from 200 million to 800 million.
Investors won’t be taking the matter of a reverse stock split lightly. However, they also have little choice but to vote in favor of the move. That’s because shares are in danger of delisting from the Nasdaq.
Why Is CRKN Stock Facing a Delisting?
Holders of CRKN stock likely already know that the share price is too low. When markets closed on Tuesday, the stock was priced at 13 cents. That’s well below the $1 minimum required to maintain a Nasdaq listing.
To avoid that delisting, Crown Electrokinetics wants to consolidate shares of CRKN stock to boost the price. Doing so would combine every 15 shares into one, which would be enough to put the stock above the $1 requirement.
Investors will also note that CRKN stock is seeing heavy trading today. As of this writing, more than 76 million shares are on the move. That’s well above the daily average trading volume of about 3.2 million shares.
CRKN stock is up 122.7% as of Wednesday morning.
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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.