Interactive Strength announces 1-for-10 reverse stock split

AUSTIN, Texas - Interactive Strength Inc. (NASDAQ:TRNR), a specialty fitness equipment manufacturer with a market capitalization of $6.93 million, will implement a 1-for-10 reverse stock split effective Friday, according to a company press release. The company, which InvestingPro data shows has faced significant stock price volatility, has seen its shares decline nearly 76% over the past six months.

The reverse split will reduce TRNR’s outstanding common shares from approximately 13.9 million to 1.4 million. Trading under the existing "TRNR" symbol will continue on a post-split basis when markets open Friday.

The company stated the action is primarily designed to maintain compliance with Nasdaq Capital Market’s minimum bid price requirement of $1.00 per share.

TRNR shareholders approved the potential for a reverse split at a Special Meeting on March 11, with the company’s Board of Directors finalizing the 1-for-10 ratio on May 6.

Proportionate adjustments will be made to the company’s preferred stock, equity awards, warrants, and shares issuable under equity incentive plans. The authorized share count and par value will remain unchanged.

Stockholders with shares in brokerage accounts will have positions automatically adjusted. Those holding shares in certificate form will have their holdings automatically adjusted to reflect the reverse split. No fractional shares will be issued, with cash provided for fractional share entitlements.

Interactive Strength produces fitness equipment under the CLMBR and FORME brands and is pursuing acquisitions of Sportstech and Wattbike. Despite current challenges, analysts anticipate revenue growth of 3.46% for the current year, according to InvestingPro, which offers 12 additional investment insights for this stock.

In other recent news, Interactive Strength Inc. announced a significant investment strategy involving the acquisition of $FET tokens developed by Fetch.ai. The company has entered into a Securities Purchase Agreement to raise up to $500 million, with an initial $55 million secured from ATW Partners and DWF Labs. This move is part of a broader strategy to strengthen its financial flexibility and support its AI and digital fitness initiatives. Additionally, Interactive Strength is in the process of acquiring Sportstech and Wattbike, aiming to expand its product range and market presence.

The company has also issued a convertible promissory note for $725,000 to S Interactive LLC, which carries a 10% original issue discount. Furthermore, Interactive Strength declared dividends for its Series A and Series C Preferred Stock, distributing shares in kind to shareholders. The company updated its investor FAQs to address shareholder questions about its AI-focused treasury strategy and the financial performance of Sportstech.

These updates include details about the rationale and structure of the acquisitions and investments, which can be found on their investor website. Investors are encouraged to review the company’s presentation and SEC filings for more comprehensive information.

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