Cardiff Lexington Corporation (OTCQB: CDIX) completed a 1‑for‑3 reverse stock split of its common shares, effective 12:01 a.m. Eastern Time on Monday, January 12, 2026. The action consolidates three shares into one, reducing the total shares outstanding from approximately 1.5 billion to 500 million and raising the per‑share price to roughly $3.00, a level that brings the company closer to the Nasdaq Capital Market’s minimum bid price requirement of $4.00 per share.
The reverse split is part of a broader strategy to position Cardiff Lexington for a potential uplisting to Nasdaq. The company’s business model focuses on acquiring and operating high‑margin orthopedics, spine care, and pain‑management practices. In the third quarter of 2025, Cardiff Lexington reported revenue of $3.1 million, up 125.6% year‑over‑year, and gross profit of $1.9 million, up 437.8% year‑over‑year, underscoring the growth trajectory that management believes will support a higher share price and a stronger market presence.
Alex Cunningham, President and CEO, said the reverse split “supports our planned uplisting to the Nasdaq Capital Market as we continue to strengthen our capital markets profile and enhance our visibility among institutional investors.” The company has previously undertaken significant reverse splits—a 1‑for‑75,000 split in January 2024 and a 1‑for‑1,500 split in March 2019—to manage its share count and per‑share price in pursuit of exchange listing requirements and to mitigate the impact of convertible debt. The current split is the most recent step in that ongoing effort.
The reverse split will also affect fractional shareholders: fractional shares will be rounded up to the next whole share, which could result in a small number of shareholders receiving a slightly higher number of shares than the exact 1‑for‑3 ratio would suggest. While the impact on individual investors is modest, the company’s focus on simplifying its capital structure is intended to improve liquidity and make the stock more attractive to institutional investors.
With the split in place, Cardiff Lexington’s share price is now positioned to meet the Nasdaq Capital Market’s $4.00 bid‑price threshold, a key milestone for the company’s uplisting plans. The company’s strong revenue and gross‑profit growth, combined with a disciplined approach to capital structure, signals confidence that it can sustain a higher share price and meet the more stringent listing standards of a national exchange.
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