SCWorx Sets 1-for-12 Reverse Split Effective August 3 to Avoid Nasdaq Delisting

summarizeSummary

SCWorx Corp. filed a 1-for-12 reverse stock split effective August 3, 2026, to regain Nasdaq compliance. The split reduces outstanding shares to ~89,000 but leaves authorized shares at 150 million, creating significant dilution potential. The company must also cure two other listing deficiencies by August 28 or face delisting.

check_boxKey Events · Corporate Governance and Compliance · WORX

• 1-for-12 Reverse Stock Split

  Effective August 3, 2026, every 12 shares of SCWorx common stock will combine into one share, reducing outstanding shares from ~1.07 million to ~89,000. The split aims to lift the stock price above $1.00 to meet Nasdaq's minimum bid price rule.

• Massive Authorized Share Overhang

  Authorized shares remain at 150 million common and 5 million preferred. Post-split, over 149.9 million authorized but unissued common shares could be issued without further shareholder approval, posing substantial dilution risk.

• Multiple Nasdaq Listing Deficiencies

  Beyond the bid price, SCWorx fails the $1 million minimum market value of publicly held shares (MVPHS) and, post-split, will fall below the 500,000 publicly held share minimum. All must be cured by August 28, 2026, or Nasdaq will delist the stock.

• Limited Future Reverse Split Options

  With a cumulative reverse split ratio of 180:1 over two years (1-for-15 in April 2026 plus this 1-for-12), Nasdaq rules severely restrict another reverse split to fix a future bid price deficiency. A delisting would likely send the stock to the OTC market.

auto_awesomeAnalysis · WORX · Technology

To meet Nasdaq's $1.00 minimum bid price rule by August 28, 2026, SCWorx is executing a 1-for-12 reverse stock split. The move will shrink the outstanding share count from ~1.07 million to ~89,000, yet authorized shares remain at 150 million — creating massive potential dilution headroom. The company also faces two additional listing deficiencies: a sub-$1 million market value of publicly held shares and a post-split public float below 500,000 shares. With a cumulative reverse split ratio of 180:1 over two years, SCWorx has almost no room for another reverse split if the stock price falls again. Delisting to the OTC market is a real risk.