Ideanomics Stock Is Tumbling: What's Driving The Action?

Ideanomics Inc IDEX shares are trading lower Wednesday. The company announced a 1-for-125 reverse stock split. 

What To Know: Ideanomics' board approved a 1-for-125 reverse stock split, which will result in the company's authorized common stock being reduced from 1.5 billion shares to 12 million shares. IDEX shares are expected to begin trading on a split-adjusted basis on Aug. 25. 

On the effective date, the total number of shares held by each shareholder will be divided by 125 and rounded up to the nearest whole share. As a result, no fractional shares will be issued and no cash or other consideration will be paid. 

The company said the split is primarily aimed at regaining compliance with the Nasdaq's $1 minimum bid requirement for continued listing on the exchange.

Ideanomics is also set to report second-quarter financial results after the market close on Aug. 25.

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IDEX Price Action: Ideanomics shares were down 25.5% at 4 cents at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.