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Paranovus Entertainment Executes Massive Reverse Split to Save Nasdaq Listing

MarketDash Editorial Team
10 hours ago
Paranovus Entertainment is implementing a 1-for-100 reverse stock split to meet Nasdaq's minimum bid price requirement, reducing outstanding shares from 350 million to approximately 3.5 million.

Paranovus Entertainment Technology Ltd (PAVS) gained 0.87% in pre-market trading on Wednesday, climbing to $0.023. It's the kind of modest bump that takes on outsized significance when you're fighting to stay listed on a major exchange.

The stock closed Tuesday at $0.023, down 36.64%, which gives you a sense of the volatility surrounding this name.

The Mechanics of the Split

Paranovus announced Tuesday that it will execute a 1-for-100 reverse share split of its Class A ordinary shares, effective at market open Thursday. This is corporate surgery designed to boost the stock price by consolidating shares.

Here's what happens: the reverse split will slash the number of outstanding Class A shares from 350 million down to approximately 3.5 million. Shares will begin trading on a split-adjusted basis on Nasdaq under the same symbol "PAVS" but with a new CUSIP number G4289N122. The par value per share will jump from $0.01 to $1.

VStock Transfer LLC will serve as the exchange agent for the reverse split. No fractional shares will be issued—any fractional interests get rounded up to the nearest whole share, according to the company's press release.

Why This Matters: Nasdaq Compliance

The entire purpose of this exercise is to help Paranovus meet the Nasdaq Capital Market's minimum bid price requirement of $1 per share. Fall below that threshold for too long, and you risk delisting—which would be a death sentence for most public companies.

The company's board approved the reverse split on December 1, and now it's game time.

The Bigger Picture

The New York-based AI-powered entertainment company has had a brutal year. The stock has collapsed 97.91% year-to-date, and it's now sporting a market capitalization of just $1.55 million. Over the past 52 weeks, shares have traded in a range between $0.02 and $1.50.

When you're trading at two cents and your market cap barely clears a million dollars, a reverse split is essentially a Hail Mary to stay alive on the exchange. Whether it works long-term depends on whether the company can execute its business plan and regain investor confidence.

Back to News

Paranovus Entertainment Executes Massive Reverse Split to Save Nasdaq Listing

MarketDash Editorial Team
10 hours ago
Paranovus Entertainment is implementing a 1-for-100 reverse stock split to meet Nasdaq's minimum bid price requirement, reducing outstanding shares from 350 million to approximately 3.5 million.

Paranovus Entertainment Technology Ltd (PAVS) gained 0.87% in pre-market trading on Wednesday, climbing to $0.023. It's the kind of modest bump that takes on outsized significance when you're fighting to stay listed on a major exchange.

The stock closed Tuesday at $0.023, down 36.64%, which gives you a sense of the volatility surrounding this name.

The Mechanics of the Split

Paranovus announced Tuesday that it will execute a 1-for-100 reverse share split of its Class A ordinary shares, effective at market open Thursday. This is corporate surgery designed to boost the stock price by consolidating shares.

Here's what happens: the reverse split will slash the number of outstanding Class A shares from 350 million down to approximately 3.5 million. Shares will begin trading on a split-adjusted basis on Nasdaq under the same symbol "PAVS" but with a new CUSIP number G4289N122. The par value per share will jump from $0.01 to $1.

VStock Transfer LLC will serve as the exchange agent for the reverse split. No fractional shares will be issued—any fractional interests get rounded up to the nearest whole share, according to the company's press release.

Why This Matters: Nasdaq Compliance

The entire purpose of this exercise is to help Paranovus meet the Nasdaq Capital Market's minimum bid price requirement of $1 per share. Fall below that threshold for too long, and you risk delisting—which would be a death sentence for most public companies.

The company's board approved the reverse split on December 1, and now it's game time.

The Bigger Picture

The New York-based AI-powered entertainment company has had a brutal year. The stock has collapsed 97.91% year-to-date, and it's now sporting a market capitalization of just $1.55 million. Over the past 52 weeks, shares have traded in a range between $0.02 and $1.50.

When you're trading at two cents and your market cap barely clears a million dollars, a reverse split is essentially a Hail Mary to stay alive on the exchange. Whether it works long-term depends on whether the company can execute its business plan and regain investor confidence.