Shares of Connexa Sports Technologies (NASDAQ:CST) were trading lower on the Nasdaq on Monday, marking the stock’s first day of trading following a 1-for-40 reverse stock split which took effect on September 22.
Fall in Share Price
At 1:36 p.m. ET, the company’s shares had fallen by 21% to $4.18 per share. The stock opened at $4 and traded within a range of $3.90 to $4.93 earlier in the session.
Reverse Stock Split
The company implemented the reverse stock split as part of its plan to regain compliance with the Nasdaq’s minimum bid price requirement of $1 per share.
Violation and Compliance Efforts
Last week, Connexa Sports received a letter from The Nasdaq Capital Market indicating that it was in violation of the exchange’s continued listing requirements. The violation was due to the company’s failure to file its Quarterly Report on Form 10-Q for the period ended July 31, 2023.
Connexa Sports Technologies offers innovative game improvement products and technologies for various ball sports, with a focus on tennis.