What's Behind Paranovus Entertainment's Pre-Market Surge?

Paranovus Entertainment Technology Ltd (NASDAQ:PAVS) gained 0.87% in pre-market trading on Wednesday, rising to $0.023.

Check out the current price of PAVS stock here.

According to the Benzinga Pro data, the stock closed on Tuesday at $0.023, down 36.64%.

Reverse Split Mechanics

Paranovus announced on Tuesday that it will execute a 1-for-100 reverse share split of Class A ordinary shares effective at market open on Thursday.

The reverse split will reduce the number of outstanding Class A shares from 350 million to approximately 3.5 million.

Shares will begin trading on a split-adjusted basis on Nasdaq under the symbol "PAVS" with a new CUSIP number G4289N122. The par value per share will increase from $0.01 to $1.

See Also: Mosaic Stock Edges Down After Hours — Here’s Why

Nasdaq Compliance Objective

The goal of the reverse split is to assist the company in meeting the Nasdaq Capital Market’s minimum bid price requirement of $1 in order to continue listing.

On December 1, the reverse split was approved by the company’s board.

VStock Transfer LLC will serve as the exchange agent for the reverse share split.

According to the company's press release, no fractional shares will be issued; any fractional interests will be rounded up to the nearest whole share.

Trading Metrics

The stock of the New York-based AI-powered entertainment company has fallen 97.91% so far this year.

With a market capitalization of $1.55 million, the stock has traded between $0.02 and $1.50 over the past 52 weeks.

Benzinga’s Edge Stock Rankings indicates AFJK stock has a negative price trend across all time frames. Monitor the performance of other companies in this sector.

Read Next:

• What Sparked Aditxt (ADTX) Stock's 52% After‑Hours Surge?

Photo courtesy: Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.