On February 19, 2025, CNS Pharmaceuticals, Inc. (NASDAQ: CNSP) declared a 1-for-50 reverse stock split, effective February 21, 2025. This strategic move aims to elevate the company's per-share trading price, ensuring compliance with Nasdaq's minimum share price requirements. Post-split, CNSP's common stock will continue trading under the same symbol but will adopt a new CUSIP number: 18978H409.

In a reverse stock split, a company consolidates its existing shares into fewer, proportionally more valuable shares. For CNS Pharmaceuticals, this means that every 50 shares of common stock will be combined into one share. While the number of outstanding shares decreases, the overall market capitalization remains unchanged. This adjustment often aims to meet exchange listing standards or appeal to a broader range of investors.

Investors should monitor CNSP's stock performance closely, as reverse stock splits can influence market perception and trading dynamics.

Know Labs Implements 1-for-100 Reverse Stock Split

Similarly, Know Labs has initiated a 1-for-100 reverse stock split, effective February 19, 2025. This action is designed to adjust the company's stock price and share structure, potentially enhancing its appeal to investors and meeting regulatory requirements.

Understanding Reverse Stock Splits

A reverse stock split reduces the number of a company's outstanding shares while increasing the share price proportionally. For example, in a 1-for-50 reverse split, an investor holding 1,000 shares at $0.10 each would now possess 20 shares valued at $5.00 each. The total investment value remains the same; only the share count and price per share are adjusted. Investors are advised to stay informed about such corporate actions, as they can impact investment strategies and portfolio valuations.