Why Is WTO Stock Falling Today?

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UTime Limited announced a reverse stock split, which it expects will satisfy Nasdaq listing requirements.

  • The company said that for every 10 Class A ordinary shares, one Class A share will be issued.
  • About 2.97 million shares total outstanding shares are expected to be converted into roughly 297,000 shares post the reverse split.
  • UTime is effecting a reverse stock split for the fifth time in under two years.

Shares of China-based UTime Limited (UP) tumbled on Wednesday after the company said it would effect a reverse stock split to meet Nasdaq’s listing conditions.

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At the time of writing, WTO stock was down nearly 22% and on track for its biggest single-day decline in four months.

UTime said that for every 10 Class A ordinary shares with a par value of $0.50 apiece, one Class A ordinary share with a par value of $5 apiece will be issued.

Shares will trade on a post-split basis starting on June 22 with a new CUSIP number but with the same ticker symbol. Post-reverse split, the company’s 2.97 million shares are expected to be reduced to roughly 297,000 shares. It is notable that UTime is executing such a transaction for the fifth time in under two years.

The company listed its securities on the Nasdaq on April 6, 2021. According to its IPO prospectus, it offered 3.75 million shares at $4 per share.

UTime is a low-cost mobile device manufacturer that, among other things, designs and develops cell phones, accessories, and related consumer electronics for low-income individuals in the U.S. and in emerging markets, including India and countries in South Asia and Africa, according to its IPO prospectus.

It also offers Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) services and counts TCL and Haier among its customers.

For the fiscal year 2025, the company saw a near 46% surge in revenue to RMB 251 million ($37.1 million), but operating expenses surged fourteenfold to RMB 657 million, resulting in a net loss of over RMB 670 million.

On Stocktwits, retail sentiment toward the WTO stock remained in the ‘extremely bullish’ territory over the last 24 hours

(RMB 1 = $0.15)<

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