July 3rd, 2025 | 12:00 CEST
Breaking news: Reverse Stock Split at Almonty – Significance and Background
Tungsten producer Almonty Industries announced a reverse stock split on Thursday. Shares will be consolidated at a ratio of 1.5 to 1. Anyone who previously held 1,500 shares will hold 1,000 shares after the split. Fractional shares will be rounded down. For example, someone holding 149 shares will receive 99 new shares. The new shares will be traded under a new International Securities Identification Number (ISIN) starting July 7, 2025. The reverse split will not affect existing shareholders: while investors will hold fewer shares in their portfolios after the split, each share will be proportionally worth more. So why is a company like Almonty Industries carrying out such a measure in the first place?
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Author:
Nico Popp
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Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Nasdaq listing approaching: A boost for Almonty and new opportunities
The reverse stock split is seen as a clear signal that things are getting serious regarding the planned listing of Almonty Industries shares on the Nasdaq. To be listed on the prestigious US stock exchange, shares must be trading at a minimum price of USD 3.00. Although the current share price is already well above this threshold, Almonty is playing it safe and consolidating its share structure. This strongly suggests that Almonty shares could begin trading on the Nasdaq within the coming weeks. A listing on one of the world's largest and most prestigious stock exchanges offers access to institutional investors in the US, increases the chance of inclusion in indices, and ensures improved international visibility and higher trading volumes. For companies, a successful listing process is often considered a kind of accolade, as it requires meeting strict financial, transparency, and compliance standards. As a result, financing also becomes easier - companies whose shares are traded on the Nasdaq play in a different league.
Reverse split on Monday – Will short sellers be caught off guard?
And what consequences could the measure have in the short term? In the past, reverse splits have repeatedly caused problems for short sellers. As a rule, brokers or clearing houses take care of the conversion to a new class of shares. However, if errors or delays occur, short sellers may be forced to cover their short positions. Since the new Almonty shares will begin trading as early as this coming Monday, and the stock has gained nearly 300% in the past six months, there could be some short sellers who will have to act in the wake of today's announced reverse split.
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