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Nxu, Inc. (NASDAQ:NXU), a Delaware-based manufacturer specializing in truck and bus bodies with a current market capitalization of $7.53 million, announced on Monday that it has completed a reverse stock split of its Class A common stock. The reverse stock split, which was effected at a ratio of 1-for-20, became effective at 12:01 a.m. Eastern Time today. According to InvestingPro data, the company’s stock has declined by over 85% year-to-date, highlighting the challenging market conditions leading to this corporate action.
The decision for the reverse stock split was previously approved by the company’s stockholders during a special meeting on February 11, 2025. The Nxu Board of Directors finalized the ratio and approved the amendment to the company’s Certificate of Incorporation on March 12, 2025. This action is aimed at consolidating shares and potentially increasing the stock’s market price. InvestingPro analysis reveals the company maintains a healthy current ratio of 1.82, indicating sufficient liquid assets to meet short-term obligations, though its overall financial health score stands at a concerning 1.33, rated as "Weak."
As a result of the reverse stock split, the common stock will begin trading on a split-adjusted basis under a new CUSIP number, 62956D303, when markets open today. The company has stated that no fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fractional share will receive a rounding up to the nearest whole share.
Additionally, the reverse stock split will result in proportionate adjustments to the per-share exercise price and the number of shares issuable under all of the company’s outstanding stock options, warrants, and equity awards. The total number of authorized shares of common stock will remain unchanged.
The reverse stock split is part of Nxu’s strategic efforts to enhance its capital structure. By reducing the number of outstanding shares, the company aims to increase the per-share trading price of its common stock, which may make Nxu more attractive to a broader range of investors. The stock’s beta of -2.53 indicates significant negative correlation with market movements, while InvestingPro has identified over 20 additional key insights about the company’s performance and outlook, available to subscribers.
This move is disclosed in compliance with SEC regulations and is detailed in Nxu’s latest 8-K filing. The company’s business address is 1828 N. Higley Rd. Ste 116, Mesa, AZ, and its telephone number is (602) 309-5425. The information reported is based solely on the press release statement issued by Nxu, Inc.
In other recent news, Nxu, Inc. announced a 1-for-20 reverse stock split of its Class A common stock, effective March 31, 2025, as a strategic move to maintain NASDAQ compliance and support its proposed merger with Verde Bioresins. This merger has been approved by Nxu’s stockholders and is expected to close in March 2025, with Verde stockholders owning approximately 95% of the combined entity. The merger positions the combined company to potentially disrupt the global plastics market with Verde’s proprietary PolyEarthylene bioresin. Additionally, Nxu has appointed Erin Essenmacher as a new independent director to its Board of Directors. She will also join the Audit Committee and receive a cash stipend for her role. The company has also approved the elimination of its dual-class stock structure and amendments to its Certificate of Incorporation, preparing for a rebranding as "Verde Bioresins, Corp." post-merger. These developments are part of Nxu’s strategic initiatives as it navigates significant changes in its corporate structure and market positioning.
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