Analyst Summary
- Worksport Ltd. will effect a 1-for-10 reverse stock split of its common stock, effective March 18, 2025.
- The company’s common stock will continue to trade on the Nasdaq under the symbol “WKSP”.
- The reverse stock split is intended to increase the price per share of the Company’s common stock to regain compliance with the $1.00 minimum bid price requirement of the Nasdaq.
- The reverse stock split will reduce the number of common shares outstanding from approximately 47,944,518 shares to approximately 4,794,452 shares.
- CEO Steven Rossi states that Worksport remains fundamentally unchanged and is targeting cash flow positivity in 2025, with the launch of COR and SOLIS products planned for later in the year.
Potential Implications
Stock Price
- The reverse stock split is intended to increase the stock price to meet Nasdaq’s minimum bid price requirement.
- The market’s reaction to the reverse stock split could influence short-term stock price volatility.