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StocksUpdated•Originally published 16 April 2026•Updated 17 April 2026•

1 min read

Small-Cap Firms Execute Reverse Splits to Meet Nasdaq Listing Requirements

Key Facts

1Erayak Power Solution announced a 1-for-10 reverse stock split of its Class A and Class B ordinary shares.

2Shares will begin trading on a post-split basis on the Nasdaq on April 20, 2026.

3The decision was approved by the board of directors on March 25, 2026.

about 2 months ago

Version History

Version 1about 2 months ago

What changed: Updated the story to include Powell Max Limited's execution of a similar reverse split and the subsequent positive price action.

Powell Max Limited (PMAX) recently executed a 1-for-10 reverse stock split to regain compliance with the Nasdaq minimum bid price requirement of $1.00. Following the action, PMAX shares surged 12.73% to close at $2.49, supported by a trading volume exceeding 208,000 shares. The company currently maintains a market capitalization of approximately $3.95 million. This follows a similar move by Erayak Power Solution Group Inc. (RAYA), which announced its own 1-for-10 reverse split scheduled to begin post-split trading on April 20, 2026. Such corporate actions are increasingly utilized by small-cap firms to ensure listing continuity and improve market visibility. While these splits increase the nominal share price, they do not fundamentally alter the underlying equity value of the companies.