GreenPower carries out 1-for-5 reverse stock split to regain Nasdaq compliance
Key Facts
GreenPower Motor's reverse stock split took effect at the market open on October 19, 2026, in a move aimed at regaining compliance with Nasdaq's minimum bid price requirement, according to a company filing. An exchange notice confirmed that the transaction consolidates every 5 outstanding common shares into one new share. The company announced the split plan on October 5, 2026, saying it aimed to address the $1-per-share bid price requirement. On October 15, it announced Nasdaq's approval and set the effective date, moving the announced plan into implementation at the market open. The company's Nasdaq trading symbol remained GP, according to the filing with the U.S. Securities and Exchange Commission. Alongside the split, the security's identification number changed to 39540E500, according to the Nasdaq notice.
Issued and outstanding shares totaled 10,503,546 before the split, according to figures in the company's filing on the transaction. GreenPower estimated that the total would be about 2,100,710 shares after implementation, subject to adjustments from rounding shareholders' entitlements. For fractional shares arising from the new ratio, the company said it would make no cash payments and would round entitlements up to the next whole new share. The changes also include proportional adjustments to exercise prices and the number of shares underlying options, warrants and convertible notes, according to the same filing. Shareholders holding old share certificates will receive instructions from Computershare on exchanging them for certificates reflecting the post-split shares. These communications will include the letters of transmittal needed to complete the exchange, under the arrangements announced by the company for shareholders.
The move to address listing requirements comes amid losses and cost-cutting measures disclosed by GreenPower in its annual information form. The company posted a loss of C$5.5 million for the fiscal year ended March 31, 2026. Its accumulated deficit at the end of that fiscal year was C$103.0 million, according to the annual filing with the U.S. Securities and Exchange Commission. The company said continued losses and U.S. tariffs prompted management to take steps to cut costs. Those measures included reducing its leased facilities and workforce, according to its account of its response to these pressures. It added that management also moved to rein in expenses as part of the cost-cutting measures outlined in the annual filing.
On the operational front, GreenPower announced that it was planning to develop an initial batch of 50 electric transit buses. It said work on the batch was being carried out with a new strategic partner as part of its announced bus development plan. The plan concerns all-electric buses, according to the company's description of the vehicles it is developing with the partner. Company President Brendan Riley addressed the location of work on the bus bodies in a statement included in GreenPower's project announcement. Riley said "body assembly is scheduled to be carried out entirely in Mexico," identifying the planned location for that part of the work.
In another collaboration, GreenPower signed a letter of intent with Invisible Urban Charging to evaluate and develop joint solutions, according to its statement on the agreement. The proposed solutions combine GreenPower's electric vehicles with the partner's capabilities in areas related to their use and operation. The partner's contribution includes charging infrastructure and software, as well as operations and financing, under the scope of cooperation described by the company in the announcement. The letter of intent covers the evaluation and development of these solutions, while the cooperation proposals remain subject to due diligence and approvals. Proceeding with the proposals also requires definitive agreements between the parties, according to the conditions outlined in GreenPower's statement.
Following the split's effective date of October 19, 2026, the next step in addressing the listing deficiency is to meet the closing-price condition the company specified when announcing receipt of Nasdaq's notice. GreenPower said regaining compliance requires the stock to close above $1 for at least 10 consecutive business days. This must be achieved within 180 calendar days of the notice, according to the terms outlined by the company. GreenPower may qualify for an additional 180 calendar days after the initial period, but eligibility remains subject to meeting specific requirements. These include satisfying the Nasdaq Capital Market's initial listing standards, apart from the bid price requirement the company is seeking to address. It must also provide written notice of its intention to cure the deficiency to qualify for the potential additional period, according to its statement.