Advertisement
Shares of AgriFORCE Growing Systems Ltd. (NASDAQ:AGRI) fell sharply on Thursday, dropping 9.4% after the company announced it will carry out a 1-for-9 reverse stock split, effective July 28, 2025. This decision was recently approved by the company’s Board of Directors and previously received shareholder approval on June 6, 2025.
What this means is that every nine shares of AgriFORCE stock will be combined into one. So, if someone owns 90 shares today, they will have just 10 shares after the reverse split takes effect. The total value of their investment won’t change immediately, but the number of shares will be reduced, and the stock price is expected to go up proportionally.
Before the reverse split, the company had around 7.85 million shares outstanding. After the split, that number will shrink to about 872,000 shares. This change will officially take place when markets open on Monday, July 28.
The main reason for this reverse split is to help AgriFORCE stay listed on the Nasdaq stock exchange. Nasdaq has a rule that requires companies to keep their stock price above $1.00 per share (Rule 5550(a)(2)). If a company’s stock trades too long below that level, it risks being removed from the exchange. A reverse split is a common way to artificially boost the share price without changing the company’s overall value.
However, reverse stock splits are often seen as a red flag by investors because they can suggest that a company is struggling financially or having trouble keeping its stock price stable. That’s why AgriFORCE’s stock dropped after the announcement. Investors may be concerned about the company’s long-term health.
While the reverse split helps AgriFORCE meet Nasdaq’s listing rules, it has raised fresh concerns among investors, leading to a sharp sell-off in the stock.