ContextLogic, doing business as Wish, shares tumbled on Wednesday after the company announced a 1-for-30 reverse stock split of its Class A common stock.
The eCommerce platform said in a statement that the move allows it to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market.
It does not reduce the number of authorized shares of the company’s common stock, which will remain at 3 billion, and will not change the par value of the common stock, which will remain at $0.0001 per share, Wish said.
The reverse stock split was approved by Wish shareholders at its annual shareholder meeting held in April, with the final ratio determined by the company’s board of directors.
Wish stock began trading on a split-adjusted basis when the market opened on April 12, 2023, under its existing trading symbol “WISH.”
Its split-adjusted shares were trading down 17.6% at US$8.08 shortly after the opening bell on Wednesday.
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