WeWork to undertake 1-for-40 reverse stock split to restore NYSE compliance


WeWork Inc. WE, +5.20% said Friday it will proceed with a 1-for-40 reverse stock split on Sept. 1, as the office-sharing company struggles to regain compliance with the New York Stock Exchange’s $1 minimum closing price required to continue listing. The stock will start trading on a post-split basis on Sept. 5. The split will be applied to Class A and Class C common stock.  Last week, WeWork warned that it has substantial doubt about its solvency as it moves to address its money-losing business. The stock rose 4% premarket on the news but is still down 89% in the year to date, while the S&P 500 SPX, -0.77% has gained 13.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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