RenX Enterprises Corp. (NASDAQ:RENX) announced it will carry out a 1-for-20 reverse stock split of its common shares, which will take effect at 12:01 a.m. Eastern Time on March 26, according to a company press release.
Trading of the company’s stock on the Nasdaq Capital Market will begin on a split-adjusted basis when markets open that day. Following the reverse split, the shares will trade under a new CUSIP number, 78637J402.
The company’s Board of Directors approved the final ratio after receiving authorization from shareholders at the annual meeting held on September 29, 2025. At that meeting, investors approved a reverse split within a range of 1-for-5 to 1-for-20, leaving the exact ratio to be determined by the board.
The action will reduce the number of outstanding shares from roughly 50 million to about 2.5 million. Shareholders’ ownership percentages will remain unchanged, except for adjustments resulting from fractional shares. The company will also apply proportional adjustments to equity awards, warrants and other convertible securities, including related exercise prices.
The total number of authorized shares will remain the same. Investors who would otherwise receive fractional shares will instead receive a cash payment calculated using the average closing price of the stock over the ten trading days prior to the effective date, multiplied by the number of pre-split shares corresponding to the fractional portion.
RenX said the reverse split is intended to help the company regain compliance with Nasdaq Capital Market’s minimum bid price requirement of $1.00 per share. The stock currently trades around $0.14 and has declined by more than 90% over the past year.
RenX is an environmental processing and sustainable materials company operating an 80-acre organics processing facility in Myakka City, Florida. The site produces compost, engineered soils and specialty growing media.
In recent developments, the company deployed a Komptech XL3 trommel screener equipped with an automated three-stacker conveyor system at its Myakka City facility to improve operational efficiency. RenX also told shareholders it expects delivery of a Microtec UTM 1200 Turbo Mill in March 2026 to support production of its engineered soil products.
As part of a financial restructuring effort, the company converted a $600,000 equity investment tied to a Georgia property into a secured note while retaining its 50% ownership stake.
RenX previously received a notice from Nasdaq after failing to meet the $1.00 minimum bid price requirement for 30 consecutive days, although the notice does not immediately affect its listing status. Additionally, the company’s subsidiary, Resource Group US LLC, signed a waste disposal agreement with a commercial landscaping company in Sarasota, Florida, to process organic materials. These updates highlight RenX’s ongoing operational and financial initiatives.