Shares of Clean Energy Technologies Inc (NASDAQ:CETY) fell 31% in premarket trading on Wednesday after the company carried out a 1-for-15 reverse stock split of its common shares.
The reverse split, approved for filing by the State of Nevada on September 26, consolidates every 15 existing shares into a single new share. This adjustment applies to both the company’s authorized and outstanding common stock.
The move was aimed at bringing Clean Energy Technologies back into compliance with Nasdaq’s continued listing requirements, particularly the $1.00 minimum bid price rule. Reverse splits are commonly used by companies at risk of delisting to raise their share price without altering the overall value of the business.
Despite its intended purpose, the sharp premarket decline indicates that investors reacted negatively to the share consolidation. Market participants often view reverse splits cautiously, as they can signal financial difficulties or underlying weakness in the company.
Clean Energy Technologies stock price
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