Worksport Ltd Announces Reverse Stock Split

In a strategic move, Worksport Ltd (NASDAQ:WKSP), a manufacturer specializing in motor vehicle parts and accessories currently trading at $3.64 per share with a market capitalization of approximately $12 million, has announced a reverse stock split of its common stock. According to InvestingPro data, the company has shown remarkable revenue growth of 777% in the last twelve months, though it currently maintains a weak financial health score. The action took effect on Monday, March 18, 2025, and was executed at a ratio of 1-for-10. This measure also concurrently reduced the total number of authorized shares of common stock in proportion to the reverse split ratio.

The reverse split consolidated every ten shares of issued and outstanding common stock into one share. Worksport clarified that no fractional shares would be distributed; instead, shareholders who would have received a fraction of a share were issued one whole share of the post-split stock. The stock has experienced significant volatility, with InvestingPro analysis indicating the shares are currently trading 70% below their 52-week high of $12.00. The company’s common stock began trading on a reverse split-adjusted basis on The Nasdaq Capital Market from the opening of the market on the day of the change. Despite the reverse split, the trading symbol for Worksport’s common stock remains unchanged as "WKSP," though it now operates under a new CUSIP number, 98139Q308.

This corporate action also necessitated adjustments to Worksport’s equity incentive plans. The number of shares available for future grants under these plans has been modified, along with the number of outstanding awards and the exercise price per share of outstanding stock options, to reflect the reverse stock split’s effects.

The reverse stock split aims to increase the per-share trading price of the company’s common stock, potentially broadening its appeal to investors and complying with Nasdaq’s minimum bid price requirement. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with 13 additional ProTips available to subscribers covering various aspects of the company’s performance and potential. The company filed the Certificate of Change with the Nevada Secretary of State to formalize the amendment to its Articles of Incorporation.

The information provided in this article is based on the recent SEC filing by Worksport Ltd.

In other recent news, Worksport Ltd. reported a significant increase in its revenues, rising from $1.5 million in 2023 to $8.5 million in 2024. The company aims to reach $1 million in weekly revenue within the next 12 to 24 months. Worksport has also announced the launch of its SOLIS Solar Tonneau Cover and COR Portable Energy System, both expected to contribute to revenue in the latter half of 2025. Additionally, Worksport has implemented a 1-for-10 reverse stock split to meet Nasdaq’s minimum bid price requirements, reducing its outstanding shares from approximately 47.9 million to 4.8 million. The company is expanding its patent portfolio by approximately 25% and joining the LOT Network to mitigate risks from patent assertion entities. Worksport’s subsidiary, Terravis Energy, introduced the AetherLux heat pump system, featuring ZeroFrost technology, which eliminates the need for defrost cycles. The company has also started shipping its AL4 tonneau cover, with production set to increase to meet demand. Worksport’s partnership with Hyundai (OTC:HYMTF) for the SOLIS Solar cover and its focus on clean energy solutions position it for growth in the electric vehicle sector.

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