Beyond Meat shares fell about 21 percent in pre-market trading after the board approved a 1-for-30 reverse stock split. The split takes effect Aug. 13, with authorized common shares reduced from 3 billion to 100 million.
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Beyond Meat drops 21% pre-market on 1-for-30 reverse split
Beyond Meat shares fall about 21 percent in pre-market trading after the board approved a 1-for-30 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement.
"We believe the reverse stock split is an important step toward maintaining our Nasdaq listing and better positioning our stock for long-term investor participation," Ethan Brown, president and chief executive officer of Beyond Meat, said.
The split takes effect Aug. 13 at 11:59 p.m. Eastern Time, with split-adjusted shares beginning trading Aug. 14 under the existing BYND symbol and a new CUSIP of 08862E307. Every 30 shares outstanding will be reclassified into one share, with fractional entitlements rounded up to the nearest whole share. Authorized common shares will drop from 3 billion to 100 million, and total authorized capital stock from 3,000,500,000 to 100,500,000.
Stockholders approved 30 alternate reverse split ratios at a special meeting Nov. 19, 2025, with the board selecting the final ratio. The company's convertible notes, including the 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030 and the 0% Convertible Senior Notes due 2027, along with outstanding warrants and equity awards, will be proportionately adjusted. Equiniti Trust Company is acting as transfer and exchange agent.
The reverse split does not change each holder's percentage ownership or proportional voting power, except for minor fractional-share effects. The par value of the common stock remains unchanged at $0.0001 per share. The company's market capitalization stood at approximately $277 million, with a float of about 498 million shares.
The pre-market decline reflects investor concern that the reverse split, while mechanically neutral, is a defensive measure often associated with companies at risk of delisting. Beyond Meat reported second-quarter results Aug. 5, and the stock has been under pressure as the plant-based protein sector faces slowing demand growth. The company has continued launching new products, including Beyond Steak Filet at Wegmans, H-E-B and Meijer this summer, but these efforts have not reversed the stock's downward trajectory.
The next milestone for the company will be the effectiveness of the split on Aug. 13 and the first split-adjusted trading session on Aug. 14. Investors will also watch whether the company can sustain its Nasdaq listing and whether the higher post-split share price attracts institutional participation.
This article is for informational purposes only and does not constitute investment advice.
