MicroCloud Hologram Inc. (HOLO) is facing a rough day on the stock market, with its shares plummeting after shareholders approved a 1-for-20 reverse stock split. This move, announced on Wednesday, is designed to help the company regain compliance with Nasdaq’s minimum bid price listing requirement.
The reverse stock split will dramatically reduce the number of outstanding Class A ordinary shares from a hefty 410,883,973 to a more manageable 20,544,198. This means each existing share will be converted into 1/20th of a new share, essentially consolidating the stock. While the goal is to boost the share price, the market appears to be reacting negatively to this news.
Trading on a split-adjusted basis will begin on October 9, 2024. As of Thursday’s trading, HOLO shares are trading below the 50-day moving average of 36 cents and are edging closer to their 52-week low of 20 cents.
If you’re interested in investing in HOLO, you can purchase shares through a brokerage platform or explore options like exchange-traded funds (ETFs) that hold the stock. ETFs can provide exposure to the Information Technology sector, which MicroCloud Hologram belongs to. This allows investors to diversify their portfolio and benefit from broader market trends.
Despite the intended benefits of the reverse stock split, the market is currently expressing skepticism. At the time of publication, MicroCloud Hologram shares were down 19.4% at 27 cents, indicating investor concern about the company’s future prospects.
