Workhorse Group Announces 1-for-12.5 Reverse Stock Split
Workhorse Group (WKHS) has announced a 1-for-12.5 reverse stock split of its authorized and outstanding common shares, effective March 17, 2025. The move aims to boost the stock price to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share, which must be maintained for at least 10 consecutive trading days before March 31, 2025.
The stock will continue trading under the symbol 'WKHS' on Nasdaq. Every 12.5 shares will automatically combine into one share, with fractional shares being rounded up to the nearest whole share. The split will not alter stockholders' percentage ownership except for minor adjustments from fractional share treatment.
Empire Stock Transfer Inc. will serve as the exchange agent, sending transaction statements to stockholders post-split. Shareholders holding shares through brokers will have their positions automatically adjusted.
Workhorse Group (WKHS) ha annunciato un raggruppamento azionario 1-per-12.5 delle sue azioni ordinarie autorizzate e in circolazione, che entrerà in vigore il 17 marzo 2025. Questa mossa mira a incrementare il prezzo delle azioni per riconquistare la conformità con il requisito di prezzo minimo di offerta di Nasdaq di $1.00 per azione, che deve essere mantenuto per almeno 10 giorni di negoziazione consecutivi prima del 31 marzo 2025.
Le azioni continueranno a essere scambiate con il simbolo 'WKHS' su Nasdaq. Ogni 12.5 azioni si uniranno automaticamente in un'azione, con le azioni frazionarie arrotondate al numero intero più vicino. Il raggruppamento non altererà la percentuale di proprietà degli azionisti, tranne per lievi aggiustamenti derivanti dal trattamento delle azioni frazionarie.
Empire Stock Transfer Inc. fungerà da agente di cambio, inviando dichiarazioni di transazione agli azionisti dopo il raggruppamento. Gli azionisti che detengono azioni tramite broker vedranno le loro posizioni automaticamente adeguate.
Workhorse Group (WKHS) ha anunciado un split inverso de acciones 1-por-12.5 de sus acciones ordinarias autorizadas y en circulación, que será efectivo el 17 de marzo de 2025. Esta medida tiene como objetivo aumentar el precio de las acciones para volver a cumplir con el requisito de precio mínimo de oferta de Nasdaq de $1.00 por acción, que debe mantenerse durante al menos 10 días de negociación consecutivos antes del 31 de marzo de 2025.
Las acciones continuarán cotizando bajo el símbolo 'WKHS' en Nasdaq. Cada 12.5 acciones se combinarán automáticamente en una acción, y las acciones fraccionarias se redondearán a la acción entera más cercana. El split no alterará el porcentaje de propiedad de los accionistas, salvo por pequeños ajustes derivados del tratamiento de acciones fraccionarias.
Empire Stock Transfer Inc. actuará como agente de intercambio, enviando estados de transacción a los accionistas después del split. Los accionistas que mantengan acciones a través de corredores tendrán sus posiciones ajustadas automáticamente.
워크호스 그룹 (WKHS)는 1대 12.5 비율의 주식 병합을 발표했습니다. 이는 2025년 3월 17일부터 유효합니다. 이 조치는 주가를 올려 Nasdaq의 최소 호가 요구 사항인 주당 $1.00를 회복하기 위한 것으로, 2025년 3월 31일 이전에 최소 10일 연속 거래를 유지해야 합니다.
주식은 Nasdaq에서 'WKHS'라는 기호로 계속 거래됩니다. 12.5주가 자동으로 1주로 합쳐지며, 분할주식은 가장 가까운 정수 주식으로 반올림됩니다. 이 병합은 주주들의 소유 비율에 영향을 미치지 않지만, 분할주식 처리로 인한 소규모 조정이 있을 수 있습니다.
엠파이어 스톡 트랜스퍼 주식회사가 교환 대행자로 활동하며, 병합 후 주주에게 거래 내역서를 발송합니다. 중개인을 통해 주식을 보유한 주주들은 자동으로 그들의 포지션이 조정됩니다.
Workhorse Group (WKHS) a annoncé un rachat d'actions inversé de 1 pour 12.5 de ses actions ordinaires autorisées et en circulation, qui sera effectif le 17 mars 2025. Cette mesure vise à augmenter le prix des actions afin de retrouver la conformité avec l'exigence de prix minimum de Nasdaq de 1,00 $ par action, qui doit être maintenue pendant au moins 10 jours de négociation consécutifs avant le 31 mars 2025.
Les actions continueront à être négociées sous le symbole 'WKHS' sur le Nasdaq. Chaque 12.5 actions seront automatiquement regroupées en une action, les actions fractionnaires étant arrondies à l'action entière la plus proche. Le rachat ne modifiera pas le pourcentage de propriété des actionnaires, sauf pour de légers ajustements dus au traitement des actions fractionnaires.
Empire Stock Transfer Inc. agira en tant qu'agent d'échange, envoyant des relevés de transaction aux actionnaires après le rachat. Les actionnaires détenant des actions par l'intermédiaire de courtiers verront leurs positions automatiquement ajustées.
Workhorse Group (WKHS) hat einen 1-zu-12.5 Reverse-Split seiner autorisierten und ausgegebenen Stammaktien angekündigt, der am 17. März 2025 in Kraft tritt. Diese Maßnahme zielt darauf ab, den Aktienkurs zu erhöhen, um die Einhaltung der Mindestgebotsanforderung von Nasdaq von $1,00 pro Aktie wiederherzustellen, die mindestens 10 aufeinanderfolgende Handelstage vor dem 31. März 2025 aufrechterhalten werden muss.
Die Aktien werden weiterhin unter dem Symbol 'WKHS' an der Nasdaq gehandelt. Jede 12.5 Aktien werden automatisch zu einer Aktie zusammengelegt, wobei Bruchstücke auf die nächste ganze Aktie aufgerundet werden. Der Split wird den prozentualen Anteil der Aktionäre nicht verändern, abgesehen von geringfügigen Anpassungen aufgrund der Behandlung von Bruchstücken.
Empire Stock Transfer Inc. wird als Austauschagent fungieren und nach dem Split Transaktionsberichte an die Aktionäre senden. Aktionäre, die Aktien über Broker halten, werden automatisch ihre Positionen angepasst bekommen.
- Potential to maintain Nasdaq listing compliance
- Automatic rounding up of fractional shares benefits shareholders
- No change in stockholders' ownership percentage
- Risk of failing to meet $1.00 minimum bid requirement despite reverse split
- Indicates underlying share price weakness requiring corporate action
- Reduced float and potential impact on stock liquidity
Insights
Workhorse's announced 1-for-12.5 reverse stock split is a clear defensive maneuver to maintain Nasdaq listing compliance. With a current share price of
The mathematics of the split are straightforward: every 12.5 shares will consolidate into one, mechanically increasing the share price by the same factor. At current valuation, this would mathematically adjust the share price to approximately
The exceptionally high split ratio (12.5:1) is noteworthy—most companies opt for more modest ratios like 1:5 or 1:10. This suggests a significant gap between current trading price and compliance requirements. While maintaining listing access preserves liquidity and institutional investment eligibility, reverse splits typically signal financial challenges rather than strength.
Shareholders should understand this is purely a technical adjustment to share structure. The split doesn't generate capital, reduce debt, or improve operations—it simply reconfigures the same equity value into fewer, higher-priced shares.
This reverse split announcement carries several meaningful implications for Workhorse and its shareholders. First, the extremely tight compliance timeline—with just 19 days between implementation (March 17) and the compliance deadline (March 31)—indicates significant urgency. The company will need the adjusted price to hold above
The chosen 12.5:1 ratio appears precisely calibrated to provide a substantial buffer above the minimum threshold. A theoretical post-split price of
While mechanically straightforward, reverse splits often trigger increased short-term volatility as the market digests the new share structure. The announcement's language that "there can be no assurance that the reverse split will have such effect [of maintaining compliance]" represents appropriate risk disclosure but also acknowledges the historical pattern of post-split price erosion.
For existing shareholders, the process will be largely automatic, with positions adjusted through brokerages and fractional shares rounded up. This rounding mechanism actually provides a minor benefit to small shareholders with positions not divisible by 12.5, essentially granting them slightly more value than their pre-split holdings.
The real test will come after implementation—whether Workhorse can stabilize at the new price level while pursuing its zero-emission commercial vehicle strategy.
CINCINNATI, March 12, 2025 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or the “Company”), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today announced that it will effect a 1-for-12.5 reverse stock split of its authorized shares and issued and outstanding shares of common stock, par value
The reverse stock split is intended to increase the market price of Workhorse’s common stock to regain compliance with the minimum bid price requirement for continued listing on Nasdaq, but there can be no assurance that the reverse split will have such effect. Workhorse has until March 31, 2025 to comply with this requirement and must see a closing bid price of its common stock of at least
As a result of the reverse stock split, every 12.5 shares of the Company’s common stock will automatically be combined into one share of common stock. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage ownership interest in the Company’s equity, except for immaterial adjustments that may result from the treatment of fractional shares as described below. No fractional shares will be issued in connection with the reverse stock split, and fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share.
The reverse stock split will occur automatically on the effective date of March 17, 2025, without any additional action on the part of Workhorse stockholders. Empire Stock Transfer Inc. is acting as the exchange agent for the reverse stock split and will send stockholders a transaction statement indicating the number of shares of common stock that stockholders hold after the reverse stock split. Stockholders owning shares via a broker, bank, trust, or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to such broker’s particular processes, and will not be required to take any action in connect with the reverse stock split.
About Workhorse Group Inc.
Workhorse Group Inc. (Nasdaq: WKHS) is a technology company focused on pioneering the transition to zero-emission commercial vehicles. Workhorse designs and builds its vehicles in the United States at the Workhorse Ranch in Union City, Indiana. The company’s best-in-class vehicles are designed for last-mile delivery, medium-duty operations, and a growing range of specialized applications. For more information, visit www.workhorse.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to the Company. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including but not limited to: our ability to cure any deficiencies in compliance with Nasdaq’s minimum bid price requirement or maintain compliance with other Nasdaq Listing Rules; the ability of the reverse split to allow us to regain compliance with Nasdaq’s minimum bid price requirement; our ability to obtain any additional relief necessary to regain compliance from Nasdaq or to meet applicable Nasdaq requirements for any such relief; and risks related to the substantial costs and diversion of personnel’s attention and resources due to these matters. While we are taking actions to address our non-compliance with Nasdaq’s minimum bid price requirement, there can be no assurance that we will regain compliance. Continued non-compliance or a delisting from Nasdaq would materially and adversely affect our ability to raise capital and our financial condition and business. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Media Contact:
Aaron Palash / Greg Klassen
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group
949-574-3860
WKHS@gateway-grp.com
FAQ
What is the ratio of Workhorse Group's (WKHS) reverse stock split announced in March 2025?
When will WKHS reverse stock split take effect in 2025?
What is the deadline for WKHS to meet Nasdaq's minimum bid price requirement?
How will the WKHS reverse split affect stockholder ownership percentages?
