- Opendoor Technologies (OPEN, Financial) seeks shareholder approval for a reverse stock split ranging from 1-for-10 to 1-for-50.
- The Special Meeting for the reverse stock split vote is scheduled for July 28, 2025.
- The move aims to maintain Nasdaq listing and support shareholder value, with discretion left to the Board on execution.
Opendoor Technologies Inc. (OPEN) has filed a preliminary proxy statement seeking shareholder approval for a potential reverse stock split, with a ratio ranging between 1-for-10 and 1-for-50. The exact ratio will be decided by Opendoor's Board of Directors. The decision will be made at the Special Meeting scheduled for July 28, 2025, at 9:30 a.m. Pacific Time.
CFO Selim Freiha stated that the proposed reverse stock split is designed to preserve Opendoor's listing on Nasdaq and enhance long-term shareholder value. The Board will evaluate various factors before implementing the split, including market conditions, trading price impact, and compliance with Nasdaq listing requirements. It retains the discretion to determine if and when to execute the reverse stock split, even if shareholders give their approval.
Reverse stock splits are often viewed negatively in the financial markets as they can signal concerns over share price declines. However, Opendoor's management argues that this approach provides optionality in maintaining their Nasdaq listing amid potentially volatile market conditions. The wide proposed ratio range underscores the uncertainty about future share price stabilization.
For additional information regarding the upcoming Special Meeting and the reverse stock split proposal, stakeholders are encouraged to review the preliminary proxy statement filed with the Securities and Exchange Commission.