Investing.com -- XBP Europe Holdings Inc (NASDAQ:XBP) stock tumbled 24.6% in premarket trading Friday after the workflow automation company announced plans for a 1-for-10 reverse stock split.
The reverse split, which was previously authorized by stockholders at the July 25, 2025 Annual Meeting, will become effective on December 12, 2025, with split-adjusted trading beginning on the Nasdaq Capital Market on December 15, 2025.
Following the implementation, every ten shares of issued and outstanding common stock will automatically be combined into one share. The company stated that no fractional shares will be issued, and stockholders entitled to fractional shares will instead receive cash payments based on the closing price on the effective date.
XBP Global, which describes itself as a global leader in workflow automation and digital transformation, will have approximately 11.75 million shares of common stock outstanding immediately after the reverse split takes effect. All outstanding warrants, stock options, restricted stock units, and other derivative securities will be adjusted proportionately, including corresponding adjustments to exercise prices and conversion ratios.
Reverse stock splits are typically implemented by companies looking to boost their share price, often to maintain compliance with exchange listing requirements or to appeal to a broader range of institutional investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
