Instead, American investors can buy Nintendo American Depository Receipts (ADRs).ĪDRs are over-the-counter certificates issued by U.S. investors can’t invest in U.S.-based Nintendo stock. Instead, it trades on the Tokyo and Osaka exchanges. That’s not by itself unusual for a huge, multi-national corporation.īut as a Japan-based firm, Nintendo doesn’t list on major U.S. You may have noticed that we listed Nintendo’s prices in both Japanese yen and U.S. It’s simple: Nintendo doesn’t trade in the United States – at least, not like “regular” stocks. So, why didn’t Nintendo’s stock split make a bigger splash? Even though splits don’t fundamentally change a company’s value, investors like to trade on the anticipation of value. Often, when giant corporations announce stock splits, it’s all over the news. Nintendo’s stock split: a bigger deal for domestic shares As such, it’s common for investors to bid up stock prices before and after the split, generating some buzz.Īnd some firms may consider a stock split if they’re aiming to end up in a larger index, such as the Dow, that may set stricter admission requirements that include share prices. Some investors see stock splits as a vote of confidence by the company’s board in its brand and future potential. Lower prices also mean that one share commands a smaller concentration of an investor’s portfolio, so existing investors may pile in more. More affordable shares can encourage new investment, offer additional liquidity, and allow room for growth. While the value of the company and investors’ portfolios doesn’t change, a lower share price has several perks. In Nintendo’s case, a 10-for-1 split meant that each 59,700-yen share would be divided into ten shares each worth 5,970 yen. No fractional shares will be issued in connection with the Reverse Stock Split.Īll fractional shares will be rounded up to the nearest whole share.”įor more MULN stock news and updates, join the newsletter below.A stock split occurs when a company divides shares of existing stock into smaller, less valuable shares. The 1-for-25 reverse stock split will automatically combine and convert 25 current shares of the Company’s Common Stock into one issued and outstanding share of Common Stock. The Company’s board of directors approved a 1-for-25 reverse split ratio, and on May 3, 2023, the Company filed a Certificate of Amendment to its Second Amended and Restated Certificate of Incorporation to effect the Reverse Stock Split effective May 4, 2023. There is no guarantee the Company will meet the minimum bid price requirement.Īt the Company’s reconvened Special Meeting of Stockholders held on January 19, 2023, the Company’s stockholders approved a proposal to authorize a reverse stock split of the Company’s Common Stock, at a ratio within the range of 1-for-2 to 1-for-25. The Reverse Stock Split is primarily intended to bring the Company into compliance with the $1.00 minimum bid price requirement for maintaining its listing on Nasdaq. “Mullen’s Common Stock will continue to trade on The Nasdaq Capital Market (“Nasdaq”) under the existing symbol “MULN” and will begin trading on a split-adjusted basis when the market opens on May 4, 2023. Announcement from the Company (Mullen Automotive) The best scenario that can happen moving forward is big companies stepping in to buy Mullen at its dollar price, with the worst case being the stock getting shorted back to pre-split levels. Shareholders were hoping Mullen Automotive stock would organically meet the Nasdaq requirement with a reverse stock split being the last resort. Mullen’s new 1-for-25 reverse stock split means shareholders will see less shares in the brokerage account at a higher price per share.įor every 25 shares that a shareholder owns, they will be converted to 1 share.įor example, an investor holding 100 shares of MULN stock at $0.06 will now hold 4 shares of MULN stock valued at $1.50 post a reverse stock split. MULN stock fell more than -21% following the announcement.Īt the same time, the company announced big EV updates as well as a new $263 million purchase order from Randy Marion Automotive Group.īut even that wasn’t enough to keep shares from falling on Wednesday. Mullen Automotive (NASDAQ: MULN) announced on Wednesday that it will go through a 1-25 reverse stock split, effective Thursday May 4th. Market News Daily – Mullen Announces New 1-for-25 Reverse Stock Split.
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