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Stocks•17 June 2026•

2 min read

Micro-Cap Tech Firms Announce Reverse Splits to Avoid Nasdaq Delisting

Key Facts

1Wearable Devices Ltd announced a 1-for-3 reverse share split for its ordinary shares and tradable warrants, effective June 22, 2026.

2UTime Limited announced a 1-for-10 reverse stock split of its Class A ordinary shares, with post-split trading starting on June 22, 2026.

3The actions aim to increase the per-share price above Nasdaq's $1.00 minimum requirement to maintain listing status.

In a move reflecting the mounting pressure on micro-cap firms to maintain their standing on major exchanges, Wearable Devices Ltd. and UTime Limited have announced reverse stock splits. Wearable Devices will implement a 1-for-3 split of its ordinary shares and warrants, while UTime has opted for a 1-for-10 split of its Class A shares, with both scheduled to begin post-split trading on June 22, 2026. These corporate actions are specifically designed to push share prices back above the Nasdaq minimum bid price requirement of $1.00 to prevent potential delisting.

Reverse splits are frequently viewed as defensive maneuvers by companies struggling with market performance, as both WLDS and WTO have recently traded below the critical $1.00 threshold. Compared to other micro-caps facing similar compliance hurdles, such as Akanda Corp which executed a 1-for-40 split earlier this year per market data, these actions often signal financial distress rather than growth. Market data shows WLDS recently touched a low of $0.82, while WTO reached a low of $0.61, highlighting the volatility surrounding these instruments.

Traders should monitor price levels closely as the effective date approaches, with WLDS at $0.987 and WTO at $0.9833 (at close June 15, 2026). Looking ahead, while the primary catalyst is the June 22 split execution, broader market sentiment for speculative tech may be influenced by upcoming US inflation data. The immediate priority for both entities remains regaining Nasdaq compliance to maintain share liquidity and investor access.