Why Blue Apron Shares Are Falling Thursday

Blue Apron Holdings, Inc. APRN shares are trading lower on Thursday after the company announced a 1-for-12 reverse stock split.

The Details:

On Wednesday, Blue Apron announced that its board of directors approved a reverse stock split of the company’s Class A common stock at a ratio of 1-for-12, which became effective as of the market open on Thursday. Every 12 issued and outstanding shares were converted to one share.

Blue Apron received a non-compliance notice from NYSE in late 2022 regarding its minimum average closing price, average global market cap and shareholders' equity. The stock spilt allows Blue Apron shares to regain compliance with the minimum share price requirement before the June 21, 2023 deadline. The company has received a deadline of June 21, 2024 to regain compliance with the market cap and stockholders' equity requirements.

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APRN Price Action: According to Benzinga Pro, Blue Apron shares are trading down nearly 19% at $5.10 at the time of publication.

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