WeWork Inc. announced a 1-for-40 reverse stock split, explaining that every 40 shares of the company's Class A and Class C common stock will be combined into one share of the corresponding class.
Its board of directors gave the green light for the move that will take effect on September 1, according to the firm's filing at the United States Securities and Exchange Commission. "The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange," the company clarified.
WeWork had warned about "substantial doubt" regarding its "ability to continue as a going concern" in a separate filing made earlier this month.
