Why Did JTAI Stock Tumble Nearly 50% Today?

• Jet.AI said that it had about 129.36 million shares of common stock outstanding as of Monday, and after the reverse stock split, it expects to have about 646,812 shares outstanding.
• After the corporate action, every 200 shares of Jet.AI outstanding common stock will be converted into one issued and outstanding share of the company's common stock. 
• Jet.AI said that the reverse stock split will help the company maintain compliance with the minimum bid price requirement under Nasdaq's listing criteria, while also enabling future issuance.

Shares of Jet.AI Inc. (JTAI) plummeted nearly 50% on Monday after the company announced a reverse stock split of its outstanding shares of common stock.

The Nevada-based artificial intelligence infrastructure developer said that the reverse stock split, at a ratio of 1-for-200, is expected to go into effect on April 8.

Jet.AI said that the reverse stock split will help the company maintain compliance with the minimum bid price requirement under Nasdaq's listing criteria, while also enabling future issuance.

Transaction Details

As per the company, it had 129.36 million shares of common stock outstanding as of Monday. After the reverse stock split, the company said that it expects to have about 646,812 shares of common stock issued and outstanding.

A reverse stock split is a corporate action that reduces the number of outstanding shares of a company, while increasing the price per share without altering the total market value or an investor's total holding value. It typically helps prevent delisting from major stock exchanges.

After the action, every 200 shares of Jet.AI outstanding common stock will convert into one issued and outstanding share of the company's common stock.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around JTAI stock remained in the ‘bearish’ territory at the time of writing.

Meanwhile, message volume around the stock increased nearly 43% while remaining in the ‘low’ territory.

Retail chatter remained mixed on the news. One user said that the plummet was a “bloodbath.”

However, another user encouraged buying the dip for a “10-20% profit by end of day.”

JTAI stock has lost almost all its value in the past year.

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