WeWork said on Friday it will proceed with a one-for-forty reverse stock split of its outstanding class A and class C common stock, which was previously authorized by shareholders.
WeWork shares had lost almost 98% of its value this year, approaching near-zero earlier in the month, after the company warned it could go bankrupt.
The reverse stock split is being implemented to increase the company’s per share trading price and to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange, WeWork said.
The reverse stock split will be effective at market close on September 1.
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