Why Is Nuvve (NVVE) Stock Down 31% Today?

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Nuvve (NASDAQ:NVVE) stock is falling on Thursday after the green energy technology company announced a one-for-40 reverse stock split.

Nuvve notes that the reverse stock split will have it consolidating 40 shares of NVVE into a single share. Doing so will take its outstanding shares from 49.9 million to 1.3 million shares.

The reverse stock split is set to go into effect after markets close on Friday. That will see NVVE stock start trading on a split-adjusted basis starting on Monday. The stock will also use the new 67079Y209 CUSIP number.

Nuvve points out that the number of authorized shares won’t change after the reverse stock split. The company says that the number of warrants for NVVE stock will also remain the same post-split.

Why A Reverse Stock Split for NVVE?

Nuvve is enacting this reverse stock split to boos the price of the company’s shares. It’s doing this to regain compliance with the Nasdaq Exchange’s minimum bid price. As it is now, the company’s 10-cent closing price is well below the $1minimum bid needed to remain on the exchange.

NVVE stock is down 30.8% on Thursday morning after announcing the reverse split. That comes alongside some 1.5 million shares changing hands. For comparison, its daily average trading volume is around 5.2 million shares.

Investors who are seeking out even more of the most recent stock market stories are going to want to keep reading!

We have all of the biggest stock market news that traders need to know about on Thursday! That includes what’s going on with shares of Aravive (NASDAQ:ARAV) stock, Marpai (NASDAQ:MRAI) stock and Lytus Technologies (NASDAQ:LYT) stock. You can find out more on these matters at the links below!

More Stock Market News for Thursday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that  InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed

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