Worksport Announces 1-for-10 Reverse Stock Split as Part of Nasdaq Compliance Plan

Rhea-AI Summary

Worksport (NASDAQ: WKSP) has announced a 1-for-10 reverse stock split effective March 18, 2025, as part of its strategy to regain compliance with Nasdaq's $1.00 minimum bid price requirement. The company's common stock will continue trading under the symbol 'WKSP' with a new CUSIP number 98139Q308.

The reverse split will reduce outstanding shares from approximately 47.9 million to 4.8 million, with fractional shares being rounded up. The split was approved by the Board on February 25, 2025, and doesn't require shareholder approval under Nevada law.

CEO Steven Rossi emphasized that Worksport remains fundamentally unchanged, targeting cash flow positivity in 2025. The company is preparing to launch its clean-energy lifestyle products, COR and SOLIS, later this year.

Positive

• Targeting cash flow positivity in 2025
• Upcoming launch of new clean-energy products COR and SOLIS
• Strategic move to maintain Nasdaq listing compliance

Negative

• Reverse stock split indicates previous share price weakness
• Risk of failing to meet Nasdaq compliance requirements despite the split

Insights

Financial Analyst

Worksport's announced 1-for-10 reverse stock split represents a critical defensive measure to regain compliance with Nasdaq's $1.00 minimum bid price requirement. With the current share price at $0.5609 and market cap of just $19.8 million, this micro-cap company is taking necessary steps to maintain its Nasdaq listing—a vital factor for institutional investor accessibility and overall liquidity.

The mechanics of this split will reduce outstanding shares from approximately 47.9 million to 4.8 million while mathematically adjusting the share price upward by the same factor. It's worth emphasizing that reverse splits don't fundamentally change company valuation, only the price-per-share representation.

CEO Rossi's statement about "targeting cash flow positivity in 2025" signals the company isn't currently profitable, though the planned launches of clean-energy products (COR and SOLIS) represent potential catalysts. The split implementation on March 18 without requiring shareholder approval (under Nevada law) demonstrates management's urgency to address the compliance issue.

Reverse splits typically carry negative market perception as they're commonly associated with struggling companies. However, the alternative—Nasdaq delisting—would significantly damage shareholder value through reduced liquidity and institutional investor exodus. This administrative maneuver, while not ideal, provides breathing room for the company to execute on its stated growth initiatives.

CEO Shares Confidence And Emphasizes Catalyst Events To Come

West Seneca, New York, March 14, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced that it will effect a 1-for-10 reverse stock split of its common stock. The reverse stock split will become effective at 12:01 a.m. Eastern Time on Tuesday, March 18, 2025, and the Company’s common stock will commence trading on the Nasdaq Capital Market (“Nasdaq”) on a post-split basis at the opening of the market on March 18, 2025, pending confirmation by the Depository Trust Company and the Nasdaq. The Company’s common stock will continue to trade on the Nasdaq under the Company’s existing trading symbol, “WKSP”, and a new CUSIP number 98139Q308 has been assigned as a result of the reverse stock split.

Chief Executive Officer, Steven Rossi, comments, “Worksport fundamentally remains unchanged after this split. We’re growing steadily, targeting cash flow positivity in 2025, and gearing up for the launch of our flagship clean-energy lifestyle products, COR and SOLIS, later this year. We have a robust list of catalysts ahead of us and look forward to the months ahead. Stay tuned for new developments.”

The Company expects that the reverse stock split, which was approved by the Company’s Board of Directors on February 25, 2025, will increase the price per share of the Company’s common stock, and is part of the Company’s strategy to regain compliance with the $1.00 minimum bid price requirement of the Nasdaq. Pursuant to Section 78.207 of the Nevada Revised Statutes, shareholder approval is not required to effectuate the reverse stock split as it will not increase the number of authorized shares of the common stock, and the number of authorized shares will be proportionately adjusted to reflect the reverse stock split.

At the effective time of the reverse stock split, each ten (10) shares of the Company’s issued and outstanding common stock will be automatically converted into one (1) issued and outstanding share of common stock without any change in the par value of $0.0001 per share or the total number of authorized shares. The reverse stock split will reduce the Company’s number of common shares outstanding, as of March 13, 2025, from approximately 47,944,518 shares to approximately 4,794,452 shares. No fractional shares of common stock will be issued in connection with the reverse stock split, and stockholders who would otherwise be entitled to receive a fractional share will be rounded up at a participant level in lieu thereof. 

Stockholders of record will receive information regarding their share ownership following the reverse stock split from the Company's transfer agent, VStock Transfer, LLC. (“VStock”). The address for VStock is 18 Lafayette Place, Woodmere, NY 11598, and VStock can be reached at +1-212-828-8436.

For more information on Worksport, please visit, http://investors.worksport.com

About Worksport

Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport’s hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy’s website is terravisenergy.com.

For more information, please visit investors.worksport.com.

Connect with Worksport

Please follow the Company’s social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the “Accounts”), the links of which are links to external third-party websites, as well as sign up for the Company’s newsletters at investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company.

Product social media	Investor social media
Instagram	X (formerly Twitter)
Facebook YouTube	LinkedIn Link to Newsletter

Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.

The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.

For additional information, please contact:

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

Forward-Looking Statements

The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “scheduled,” “expect,” “future,” “intend,” “plan,” “project,” “envisioned,” “should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.

FAQ

When will Worksport's 1-for-10 reverse stock split take effect?

The reverse stock split becomes effective at 12:01 a.m. Eastern Time on Tuesday, March 18, 2025, with trading on post-split basis beginning the same day.

How many WKSP shares will be outstanding after the reverse split?

The number of outstanding shares will reduce from approximately 47,944,518 to 4,794,452 shares.

What happens to fractional shares in WKSP's reverse split?

Stockholders entitled to fractional shares will have their shares rounded up at the participant level.

Why is Worksport implementing a reverse stock split?

The reverse split aims to increase the stock price to regain compliance with Nasdaq's $1.00 minimum bid price requirement.

What are Worksport's key business targets for 2025?

Worksport targets cash flow positivity in 2025 and plans to launch its COR and SOLIS clean-energy lifestyle products.