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DIAMOND BAR, Calif. - Newegg Commerce, Inc. (NASDAQ: NEGG), an e-commerce company specializing in technology products with annual revenue of $1.39 billion, has disclosed that it will execute a reverse stock split of its common shares at a ratio of twenty-to-one, effective April 7, 2025. The action is aimed at ensuring compliance with the Nasdaq’s minimum price per share requirement for continued listing, as the stock currently trades at $0.27 and has declined nearly 32% year-to-date. According to InvestingPro analysis, the company’s shares are currently undervalued.
The reverse stock split will proportionately increase the par value of Newegg’s common shares from $0.021848 to $0.43696. The company’s board of directors and controlling shareholders have approved the measure through written consent. Following the split, the common shares will retain their listing on the Nasdaq Capital Market under the ticker symbol NEGG, although the CUSIP number will change from G6483G 100 to G6483G 209. InvestingPro data reveals that the company’s overall financial health score is currently rated as WEAK, with particularly concerning metrics in profitability and price momentum.
All shareholders will be affected by the split in a proportional manner, with no change to their percentage interest in the company, except in the case of fractional shares. These fractional shares will be exchanged for cash, as per the company’s announcement. With a market capitalization of $104.59 million, Newegg faces significant challenges, as indicated by multiple InvestingPro Tips, including weak gross profit margins and volatile price movements.
Computershare Inc. is serving as the exchange and paying agent for this corporate action. Newegg advises registered holders to reach out to Computershare with any inquiries, while beneficial holders should contact their respective banks, brokers, or nominees for assistance.
The reverse stock split is a strategic move by Newegg to maintain its listing standards and to continue its presence in the public market. The company’s SEC filings provide additional information on the financial implications and the process for shareholders.
This news is based on a press release statement from Newegg Commerce, Inc.
In other recent news, Newegg Commerce, Inc. announced a reverse stock split of its common shares, a strategic move to maintain compliance with Nasdaq’s listing standards. This twenty-to-one share combination aims to meet the minimum bid price requirements and is expected to take effect in early April 2025. Additionally, Newegg has expanded its product lineup by launching AMD Radeon RX 9070 series GPUs, which are now available for purchase. These GPUs feature AMD’s latest RDNA 4 architecture, designed to enhance gaming and content creation performance.
Newegg also introduced NVIDIA’s GeForce RTX 5070 Ti GPUs, further broadening its offerings in the technology sector. In conjunction with this release, Newegg relaunched its Shuffle program to provide customers a fair chance to purchase in-demand products. The demand for NVIDIA’s RTX 50 Series GPUs was significant, with the products selling out within minutes of their release. Newegg assured customers that restocks would be announced in real-time, encouraging them to follow social media for updates.
Furthermore, Newegg’s in-house brand ABS released a new line of gaming PCs equipped with the RTX 5070 Ti GPUs. These systems are available exclusively at Newegg and are designed to cater to gamers and content creators seeking high-performance technology. Newegg continues to promote its GPU Trade-In Program, which offers customers credit toward new purchases, supporting both affordability and sustainability.
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