CCJ - Arcimoto (FUV) Stock Sinks on Reverse Stock Split Plans
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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 it aiming for a reverse stock split in a range of one-for-five to one-for-twenty.
Why a Reverse Stock Split?
Arcimoto is seeking a reverse stock split to keep its shares above the $1 minimum price to remain listed on the Nasdaq Exchange. The company initially adopted this plan when its shares were still trading above the $1 mark. However, as of this writing, its shares are sitting 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 to face delisting from a public exchange. The company also notes it could affect liquidity, as well as 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 on the move. That’s above its 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!
More Wednesday Stock Market News
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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.
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