Why Reed's Shares Are Nosediving

Reed's Inc REED shares are trading lower by 18.59% to $0.075 Wednesday afternoon after the company announced a reverse stock split.

What Else?

Reed's board of directors has approved a 1-for-50 reverse stock split of the Company's issued and outstanding shares of common stock. Reed's says the reverse stock split will become effective at 12:01 a.m. ET on January 26.

The company expects that the reverse stock split, which was approved by shareholders at a special shareholder meeting on January 24, will increase the market price per share of the company's common stock, bringing the company into compliance with listing requirements of the $1.00 minimum bid price requirement by The Nasdaq Capital Market.

See Also: Why Fox Corporation Stock Is Rising Today

According to data from Benzinga Pro, REED has a 52-week high of $0.43 and a 52-week low of $0.06.