These are the upcoming stock splits for the week of August 19 to August 23, based on TipRanks’ Stock Splits Calendar. A stock split is a corporate action in which the company issues additional common shares to increase the number of outstanding shares. Accordingly, the stock price of the company’s shares decreases, which maintains the market capitalization before and after the split. In contrast, there are also reverse stock splits that reduce the number of outstanding shares (consolidate). In this case, too, the market cap is maintained as the share price increases following the reverse stock split.
Companies often undertake stock splits to improve the liquidity of the common shares and make them more affordable for retail investors. Let’s look quickly at the upcoming stock splits for the week.
Surf Air Mobility(SRFM) – Surf Air Mobility is a regional electric aviation, software, and air travel company. It operates short-haul scheduled flights and has flown millions of passengers across the U.S. On August 8, the company’s board approved a one-for-seven reverse stock split, effective August 19. Through this stock split, the company aims to comply with the NYSE’s minimum bid price requirement for continued listing.
Better Home Finance Holding Company(BETR) – Better Home operates a financial digital platform that offers residential mortgage, insurance, and real estate services in the U.S. and the UK. On August 1, the company’s board approved a one-for-50 reverse stock split for its Class A common stock to regain compliance with Nasdaq’s listing requirements. The reverse stock split became effective on August 16, after the market closed. Shares will start trading on a split-adjusted basis on August 19.
SITE Centers(SITC) – SITE Centers owns and manages open-air shopping centers in suburban, high-household-income communities across the U.S. The company operates as a REIT (real estate investment trust). On July 15, SITE’s board announced a one-for-four reverse stock split, which will be effective on August 19. SITE is also on track for the spin-off of its Curbline Properties portfolio into a separate listed entity in October. For the spin-off, SITE has undertaken the sale of assets worth $1 billion to date. It has built a portfolio of 72 wholly-owned properties for the CURB listing. The reverse stock split is also reportedly undertaken as one of the steps toward the spin-off.
Faraday Future Intelligent Electric(FFIE) – Faraday Future Intelligent Electric manufactures next-generation smart electric connected vehicles. On August 4, FFIE’s board approved a reverse stock split of its Class A common stock in the ratio of one-for-40. The split took effect on August 16, after the market closed, to regain compliance with Nasdaq’s listing requirements. FFIE Class A common shares are expected to start trading on a split-adjusted basis on August 19.
Aligos Therapeutics(ALGS) – Aligos Therapeutics is a clinical-stage biopharmaceutical company focusing on small molecule and oligonucleotide drug candidates. The company seeks to develop medicines for viral infections and liver diseases such as MASH (metabolic dysfunction-associated steatohepatitis), Chronic Hepatitis B, and coronavirus. On August 15, ALGS announced a one-for-25 reverse stock split of its common shares, effective August 19. This step is taken to regain compliance with Nasdaq’s minimum bid price requirement of $1.00 apiece.
Gingko Bioworks Holdings(DNA) – Gingko Bioworks is a biotechnology company. It operates a cell platform that enables customers to program cells. On August 14, shareholders approved a one-for-forty reverse stock split of the company’s Class A common shares. DNA shares are expected to start trading on a split-adjusted basis on August 20. The step was taken to regain compliance with the NYSE’s minimum bid price requirement of $1.00 per share.
RedHill Biopharma(RDHL) – Israel-based RedHill Biopharma is a specialty biopharmaceutical company focused on developing treatments for gastrointestinal diseases. It currently has two U.S. FDA (Food and Drug Administration) approved drugs for sale in the U.S. On August 16, RDHL announced a 1-for-25 reverse stock split of its ADS (American depositary shares). The reverse stock split will change the ratio of ordinary shares to ADS from one-to-400 to one-to-10,000. Effective August 20, the ADS will start trading on a split-adjusted basis. The reverse stock split will help regain compliance with Nasdaq’s minimum bid price requirement for continued listing.
Cadrenal Therapeutics(CVKD) – Cadrenal Therapeutics is a biopharmaceutical company focused on developing its late-stage oral and reversible blood thinner medication, tecarfarin. The drug aims to prevent heart attacks, strokes, and deaths due to blood clots in patients with rare cardiovascular conditions. Cadrenal announced a one-for-15 reverse stock split of its common stock to regain compliance with the minimum bid requirement for continued listing on the Nasdaq. Shares are expected to start trading on a split-adjusted basis on August 20.
ENDRA Life Sciences(NDRA) – ENDRA Life Sciences is developing an advanced Thermo-Acoustic Enhanced UltraSound (TAEUS) system that enables better visualization of human tissue composition, function, and temperature. The initial application of TAEUS is for measuring fat in the liver as a means to assess and monitor steatotic liver disease (SLD) (formerly known as NAFLD-NASH). On August 16, NDRA announced the reverse stock split of its common shares in the ratio of one-for-50. Shares are expected to start trading on a split-adjusted basis on August 20. The purpose of this reverse stock split is to increase the company’s share price in accordance with Nasdaq’s minimum bid price requirement.
