Paranovus Entertainment Technology announced a 1-for-100 reverse share split of its Class A shares effective December 18.
- The reverse split will reduce outstanding shares from about 350 million to roughly 3.5 million.
- Nasdaq had given Paranovus until Jan. 7, 2026, to restore compliance.
- Earlier this month, Paranovus reported $12.41 million in revenue for the first half of FY2025, an extraordinary 18,037% year-over-year increase.
Paranovus Entertainment Technology (PAVS) stock was in the spotlight on Tuesday after it announced a 1-for-100 reverse share split of its Class A shares effective December 18, just days after posting an 18,000% surge in revenue for the first half of fiscal 2025.
At the time of writing, PAVS stock was down 35%.
The company added that the par value of each share will increase from $0.01 to $1.00, with the share price expected to adjust accordingly. The move is intended to help the company regain compliance with Nasdaq’s $1.00 minimum bid price requirement.
The reverse split will reduce outstanding shares from about 350 million to roughly 3.5 million, with fractional shares rounded up, the company said.
This comes after Nasdaq notified Paranovus about compliance issues earlier this year, giving the company until Jan. 7, 2026, to restore compliance.
H1 Results Snapshot
Earlier this month, Paranovus reported $12.41 million in revenue for the first half of FY2025, an extraordinary 18,037% year-over-year increase. The surge was driven by its U.S. e-commerce and TikTok-focused service units.
Net profit rose to $97,708, compared with a loss of $412,181 in the prior-year period, while gross profit climbed to $2.48 million from $9,276. The company attributed the results to the exit from its legacy loss-making operations, including internet information and automobile businesses.
Growth was fueled by U.S. subsidiaries Bomie Wookoo Inc., Wookoo LLC, and Bomie US LLC, specializing in e-commerce sales and TikTok-related branding, consulting, and advertising. The results highlight improved operating leverage following the acquisition of Bomie Wookoo, a b2b digital marketing services firm, in March.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits shifted from ‘extremely bullish’ to ‘bullish’ amid ‘high’ message volumes.
One user remained skeptical despite the news.
However, another was bullish after the company’s strong results.
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