Beyond Meat announces reverse stock split amid share price collapse

Beyond Meat, Inc. (NASDAQ: BYND) announced it will implement a 1-for-30 reverse stock split, consolidating 30 existing shares into one new share. This move aims to increase the company's stock price and avoid delisting from the Nasdaq stock exchange.

The announcement followed a significant drop in the company's share price, which fell by nearly 20% to approximately $0.41 per share. This marks a record low for the stock, which previously traded near $240 per share at its peak.

Beyond Meat's shares have been trading below the $1 threshold since early May, putting the company at risk of delisting from Nasdaq. Exchange rules require a stock to maintain a minimum bid price for a specified period to remain listed.

CEO Ethan Brown stated that the reverse stock split is intended to help the company regain compliance with listing requirements and better position its stock for long-term investor participation. The split-adjusted shares are expected to begin trading on August 14.

Reverse stock splits are uncommon but have been utilized by other companies like FuboTV and Lucid Group. While the split artificially inflates the per-share price, the company's overall market capitalization remains unchanged at the time of the split due to the proportional decrease in the number of outstanding shares.