What's Going On With Workhorse Shares Monday?

Worhorse Group Inc. (NASDAQ:WKHS) shares were trading higher but have since reversed and begun trading lower after the company’s previously announced 1-for-12 reverse stock split went into effect.

What To Know: The reverse split took effect at Monday's market open, and the stock began trading on a split-adjusted basis. Stockholders approved the move on Nov. 25, authorizing the board to enact a reverse split at a ratio between 1-for-8 and 1-for-12.

The board implemented a 1-for-12 ratio, reducing outstanding shares from about 26 million to roughly 2.17 million, subject to adjustments. Fractional shares are not being issued, and any fractional amounts are being rounded up to the nearest whole share.

Workhorse said the reverse split is intended to help the company meet Nasdaq's minimum share-price requirements related to its proposed merger with Motiv Power Systems. The company noted there is no assurance the move will achieve that outcome.

The WKHS trading symbol remains unchanged, and the new post-split CUSIP number is 98138J503. Outstanding options, warrants, restricted stock and restricted stock units will be adjusted to reflect the split.

WKHS Price Action: At the time of writing, Workhorse shares are trading 18.48% lower at $7.64, according to data from Benzinga Pro.

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Photo: T. Schneider via Shutterstock