Shares of Globavend Holdings Limited (NASDAQ:GVH) are trading lower Wednesday following news of a 1-for-200 reverse stock split.
What To Know: On Wednesday, the Australia-based e-commerce logistics provider announced that the reverse stock split, previously approved by shareholders at an extraordinary general meeting on April 28 2025, will take effect on July 21.
Under the terms of the reverse split, every two hundred outstanding ordinary shares will be converted into one new ordinary share. This move will reduce the total outstanding shares from approximately 253 million to around 1.27 million, subject to adjustments for fractional shares.
Investors often view reverse stock splits as a sign of financial weakness, particularly when used to maintain listing standards on major exchanges.
GVH Price Action: Globavend shares were down 34.7% at 50 cents at teh time of writing, according to Benzinga Pro.
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