WeWork, maneuvering to maintain NYSE listing, moves ahead with 1-for-40 reverse stock split

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PHOTO CREDIT: Mary Altaffer - staff, ASSOCIATED PRESS' src='https://biztimes.biz/wp-content/uploads/2023/08/64df8bbc7a36a.image_.jpg'/>

FILE - This Oct. 15, 2019 file photo shows a WeWork logo at the entrance to one of their office spaces in the SoHo neighborhood of New York. WeWork is warning there’s “substantial doubt” about its ability continue business as a going concern as a result of financial losses, projected cash needs and other factors. The New York-based workspace-sharing company said Tuesday, Aug. 8, 2023 that it's ability to stay in business depends on its ability to improve its liquidity and profitability over the next 12 months. (AP Photo/Mary Altaffer, File)

PHOTO CREDIT: Mary Altaffer - staff, ASSOCIATED PRESS

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Posted By: AP August 18, 2023

WeWork is moving forward with a 1-for-40 reverse stock split in a bid to maintain its listing on the New York Stock Exchange.

The NYSE issued a notice to the workspace-sharing company in the spring after shares closed below an average of $1 over a 30-day trading span.

The value of company shares have plunged since their flashy debut in 2021 and tumbled 21% at the opening bell Friday, to 12 cents apiece.

Earlier this month WeWork warned there was “substantial doubt” about the New York company’s “ability to continue as a going concern” — which is accounting-speak for having the resources needed to operate and stay in business. WeWork pointed to increased member churn, financial losses and the need for cash, among other factors, over the next year.

After the split, every 40 shares held by an investor will become a single share.

WeWork Inc. said Friday that the reverse stock split will be effective on Sept. 1. Its Class A stock will start trading on a post-split basis at the market open on Sept. 5.

The company doesn’t expect the reverse stock split to impact its current or future business operations.