WeWork? No, WeSplit. Meme Stock Files For 1-40 Reverse Split

WeWork Inc WE on Friday announced intentions to undergo a 1-for-40 reverse stock split for its Class A and Class C Common Stock.

What Happened: The decision aims to elevate the company’s per-share price and ensure adherence to the New York Stock Exchange’s $1 per share minimum closing price mandate.

Despite once being hailed as a primary beneficiary of the COVID-19 pandemic-induced shift towards more flexible working arrangements, WeWork is currently struggling, saying earlier this month that it had "substantial doubt" about its future.

In April, the New York Stock Exchange issued a non-compliance notice to the company, given that its stock’s average closing price stayed below the required $1 for a consecutive 30 trading-day period.

Outside of the split, shares of WeWork gained notoriety earlier this month from the WallStreetBets Reddit community, referred to as the “apes.” The digital cohort showed a renewed interest in WeWork, driving its shares up by over 130% on a single day last week.

The reverse stock split is slated to take effect post-market on Sept. 1, with the adjusted Class A Common Stock trading to commence on Sept. 5.

WE Price Action: Shares of WeWork are trading 19.03% lower to $0.12, according to Benzinga Pro.

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