iPower Executes 1-for-8 Reverse Split to Defend Nasdaq Listing
Benzinga reported Tuesday that iPower Inc. (NASDAQ: IPW), a technology-driven supply chain provider serving online retailers, will execute a 1-for-8 reverse stock split effective May 22. The consolidation is designed to lift the company’s per-share price and preserve its Nasdaq listing.
What the Split Means for Shareholders
Every eight existing iPower shares will automatically convert into one new share. No fractional shares will be created by the transaction. Shareholders who would otherwise hold a fraction of a share will instead receive a cash payment. The stock will continue trading under the same “IPW” ticker on the Nasdaq Capital Market. A new CUSIP number, 46265P305, will take effect alongside the change.
Share Count Shrinks Sharply
Before the reverse split, iPower had approximately 5.29 million shares of common stock outstanding. After the consolidation takes effect at 12:01 a.m. Eastern Time on Thursday, that figure will fall to roughly 661,000 shares. Trading on a split-adjusted basis begins at the market open that same morning. Both the board of directors and stockholders previously approved the measure.
Background: Nasdaq’s Minimum Bid Rule
Nasdaq’s continued-listing standards require that a stock maintain a minimum bid price of $1.00 per share. Companies that trade below that threshold for a sustained period receive a compliance notice and must take corrective action within a defined window. Reverse splits are among the most common tools used by small-cap issuers to recover quickly. iPower’s common stock was trading near $0.79 as of Tuesday, well below the required floor, making the consolidation a near-mandatory step.
iPower’s Business at a Glance
Founded and headquartered in Rancho Cucamonga, California, iPower describes itself as a data- and technology-driven supply chain and infrastructure business. The company focuses on serving online retailers and brands, operating at the intersection of e-commerce logistics and digital commerce infrastructure. Despite its operational focus, the low share price has put the company’s exchange listing under pressure, a challenge common among smaller Nasdaq-listed firms navigating post-growth market conditions.
The reverse split does not alter the company’s underlying assets, revenue, or strategic direction. It is a structural adjustment meant to satisfy exchange rules rather than signal any change in business fundamentals. Investors should note that reverse splits, while technically neutral, often reflect broader financial strain at smaller public companies.
Read Next: What Is a Reverse Stock Split and How Does It Affect You?
