Wearable Devices Ltd. (NASDAQ: WLDS) has announced a 1-for-3 reverse share split of its ordinary shares and publicly traded warrants, effective at the opening of trading on June 22, 2026. The move is intended to increase the per-share trading price of the company's ordinary shares and regain compliance with Nasdaq's $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market.
The reverse split, which was previously approved by shareholders and the board of directors, will reduce the number of outstanding ordinary shares from approximately 6.57 million to 2.19 million. Publicly held warrants will decrease from approximately 32,886 to 10,962, subject to rounding adjustments. The company stated that the transaction will not alter shareholders' proportional ownership interests, aside from minor changes resulting from the treatment of fractional shares. Corresponding adjustments will be made to outstanding options, warrants, restricted share awards, and equity incentive plans.
Wearable Devices is a growth company focused on human-computer interaction through its AI-powered neural input touchless technology. Its consumer products, the Mudra Band and Mudra Link, enable touch-free control of digital devices using gestures across multiple operating systems. The company operates through a dual-channel model of direct-to-consumer sales and enterprise licensing, targeting markets in gaming, productivity, and extended reality (XR).
This reverse split is a critical step for Wearable Devices to maintain its Nasdaq listing, which provides access to capital markets and investor visibility. Failure to meet the minimum bid price requirement could result in delisting, potentially impacting the company's ability to raise funds and its stock liquidity. The split is a common strategy for companies facing similar compliance issues, but it does not change the underlying value of the company, as the market capitalization remains the same post-split.
For investors, the reverse split may lead to a higher per-share price, which could attract institutional investors that have minimum price thresholds. However, reverse splits can sometimes carry a negative stigma, as they are often used by companies with struggling stock prices. The success of this move will depend on the company's execution of its business strategy and market reception.
Wearable Devices' ordinary shares and warrants trade on the Nasdaq Capital Market under the symbols "WLDS" and "WLDSW," respectively. The company's newly launched ai6 Labs ecosystem aims to accelerate its vision by integrating research, products, and AI breakthroughs. More information is available in the company's newsroom at https://ibn.fm/WLDS.
