Capstone Sets 1-for-30 Reverse Split Effective October 19
CAPS is trading near its 52-week low of $0.11 (0.0% above the low) on light trading volume (0.2× avg).
Summary
Capstone's board fixed the reverse split at 1-for-30, effective at the open on October 19, consolidating roughly 27.5 million shares into about 918,000. Stockholders had already authorized a ratio between 1-for-5 and 1-for-50 at the June 18 annual meeting, so the board's choice of 1-for-30 is the final step. The move is a direct response to a share price that has collapsed to $0.11, near its 52-week low of $0.11 versus a high of $1.36, and it is the standard mechanism to regain Nasdaq's $1 minimum bid compliance. The split itself changes nothing fundamental: no effect on authorized shares, par value, or share rights, though conversion prices on the senior secured convertible note, warrants, and equity awards will adjust proportionally. The real story remains the balance sheet cleanup — the company has retired 85% of its convertible note principal, cutting the balance to $1 million, and posted Q2 revenue up 67% to $21.5M with positive Stone Business Adjusted EBITDA of $2.0M. Watch whether the post-split price holds above $1 and whether Nasdaq confirms compliance; the August 10-Q/A also flagged a material weakness in EPS controls, so execution credibility is still in question.
At the time of this announcement, CAPS was trading at $0.11 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $3.2M. The 52-week trading range was $0.11 to $1.36. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: BusinessWire.