U Power (NASDAQ:UCAR) stock is up on Monday as the Chinese electric vehicle (EV) company prepares for a reverse stock split later this week.
U Power will consolidate 100 shares of UCAR into a single share of stock when markets open on Wednesday. It will keep the UCAR stock ticker but change to a new CUSIP number of G9520U116.
U Power got approval for this reverse stock split from shareholders during a special shareholder meeting in late March. The company also notes it won’t issue any fractional shares in the reverse split.
What’s Behind the UCAR Reverse Stock Split
The U Power reverse stock split comes after the company received a delisting notice in February. The company’s low stock price of just 5 cents is the problem, causing it to risk delisting.
U Power appealed the delisting and is using this reverse stock split to boost the price of its shares. Doing so should allow it to avoid delisting as it would see its shares trade for roughly $5 each based on its prior closing price. The minimum needed to remain on the Nasdaq Exchange is $1 per share.
UCAR stock is up 12.2% as of Monday morning.
Investors looking for more of the most recent stock market stories are in luck!
We have more of the hottest stock market news ready to go on Monday. Among that is why shares of MediaCo (NASDAQ:MDIA) stock are up, the biggest pre-market stock movers this morning and more. All of this info is ready to go at the links below!
More Stock Market News for Monday
- Why Is MediaCo (MDIA) Stock Up 86% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- PLUG Stock: Plug Power Faces Shareholder Lawsuit Over 2023 Finances
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On the date of publication, William White did not have (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.
