TPET announces reverse stock split to maintain NYSE American listing, triggering a sharp post-market selloff.
Trio Petroleum (TPET) shares plunged 23.5% in post-market trading after the company announced a 1-for-9 reverse stock split. The move aims to preserve its listing on the NYSE American exchange, with post-split trading set to begin August 31.
The reverse split reduces the number of outstanding shares by consolidating nine shares into one. Trio Petroleum had previously warned of potential delisting risks due to low share price thresholds. No prior splits were announced in recent quarters.
The announcement drove immediate selling pressure, reflecting investor concerns over dilution and market perception of reverse splits.