WKHS Stock Slides 5% Ahead Of 1-For-12 Reverse Split

• The stock will begin trading on a split-adjusted basis on Nasdaq on December 8
• The reverse split is intended to help the company meet Nasdaq’s minimum share price requirements tied to its planned merger with Motiv Power Systems.
• Workhorse and Motiv Power are expected to merge to create a medium-duty electric truck manufacturing company.

Workhorse Group Inc. (WKHS) stock tumbled 5% on Friday, ahead of a scheduled 1-for-12 reverse split of its shares, with the stock set to begin trading on a split-adjusted basis on December 8. 

Companies typically turn to reverse stock splits to lift their share price above the $1 minimum required by major exchanges, helping them regain compliance after a deficiency notice and avoid delisting.

Following that, Workhorse’s outstanding shares will shrink from about 26 million to roughly 2.17 million, but its authorized share count will remain unchanged. The reverse split is intended to help the company meet Nasdaq’s minimum share price requirements tied to its planned merger with Motiv Power Systems.

Merger Details

In August, Workhorse had entered into a definitive all-stock merger agreement with Motiv Electric Trucks. The idea behind the merger is to create a medium-duty electric truck manufacturing company. Motiv’s controlling investor will hold about 62.5% of the combined company, while Workhorse shareholders will hold roughly 26.5%.

Workhorse had secured convertible-note financing, valuing the combined entity at roughly $105 million. The transaction is expected to close in the fourth quarter of fiscal 2025.

The company also closed two related deals with entities tied to Motiv’s controlling investor – a $20 million sale-leaseback of its Union City, Indiana plant, and a $5 million secured convertible note.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits has remained in the ‘bearish’ zone over the past 24 hours. One user believes that traders initiate shorts and then look to open further short positions again on Monday.

The stock has been under heavy selling pressure this year, declining more than 90%.

Also read: Southwest Airlines Joins Peers In Slashing 2025 Profit Outlook, Citing Shutdown Pain

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