Lucid Group announced that its board gained approval for a reverse stock split proposal from shareholders. This amendment to its Certificate of Incorporation allows the company to proceed with a potential reverse stock split.
The reverse stock split is typically pursued to increase the per-share price of the stock, often to meet minimum bid price requirements for continued listing on a major exchange. This action aims to improve the stock's market perception and liquidity.
While the approval provides the company with the flexibility to execute this corporate action, such moves are often viewed with caution by investors, as they can sometimes signal underlying financial pressures.
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