What Is a 1‑for‑10 Reverse Stock Split?

Yesterday, Banzai International, Inc. (NASDAQ:BNZI) announced a 1‑for‑10 reverse stock split, set to take effect July 8, 2025. Here’s a comprehensive guide explaining what that means—and how similar moves have played out recently.

What Is a 1‑for‑10 Reverse Stock Split?

A reverse stock split consolidates multiple existing shares into fewer new shares, raising the per‑share price. In a 1‑for‑10 split, every 10 shares becomes 1 share. If you held 1,000 shares trading at $0.50 each, post-split you’d have 100 shares trading roughly at $5.00—in theory, your total value remains unchanged.

Why Do Companies Do Reverse Stock Splits?

Here are the most common reasons:

• Regulatory compliance – to meet minimum share price requirements for Nasdaq or NYSE listings

• Improve market perception – higher share prices may look more credible

• Attract institutional investors – some funds have minimum price thresholds

• Reduce volatility – very low-priced stocks often swing wildly

Companies usually embark on reverse splits when trying to address one or more of the above.

Banzai International: Why Is This Stock Splitting?

Earlier today, Banzai revealed that shareholders approved a 1‑for‑10 reverse split on June 27, 2025, and trading on a split-adjusted basis will begin July 8, 2025.

This action is likely intended to boost its per-share price, aligning with listing requirements and enhancing market credibility. With its stock recently trading under the $1 threshold, Banzai appears to be proactively addressing potential delisting risk from Nasdaq.

How a Stock Split Affects Shareholders

• No dilution or issuance – ownership percentage remains the same

• Value remains consistent – absent market reactions

• Fractional shares – brokers may settle these in cash

• Volatility – possible short-term price swings on split day

Other Recent 1‑for‑10 Reverse Splits

Banzai International isn’t alone in pursuing a reverse split this year. Several companies—often small caps or micro caps—have initiated similar actions in recent months, typically to maintain exchange compliance or reset investor perception.

For example, Comstock Inc. (NYSE:LODE) announced a 1‑for‑10 reverse split that took effect on February 24, 2025. The company reduced its outstanding shares from approximately 237.7 million to just 23.8 million. Comstock’s goal was to increase its share price to avoid falling out of compliance with listing requirements while realigning its capital structure amid broader restructuring efforts.

Arrowhead Pharmaceuticals (NASDAQ:ARWR), another firm that implemented a 1‑for‑10 reverse stock split earlier this year, made the move to simplify its share base and potentially appeal to institutional investors by boosting its stock price into a more traditional trading range.

Similarly, China Pharma Holdings, Inc. (NYSE:CPHI) carried out its 1‑for‑10 reverse split effective April 15, 2025, citing ongoing efforts to meet continued listing standards. As with the others, the total market value of shareholder holdings remained the same, though the stock experienced short-term volatility following the adjustment.

These examples demonstrate that reverse splits are often part of a larger strategic pivot, particularly when companies are managing compliance concerns or attempting to reposition their brand in the eyes of investors.

What Investors Should Watch When Companies Announce Reverse Stock Splits

When companies announce reverse splits, consider:

Final Takeaways

A 1‑for‑10 reverse split is mostly a cosmetic adjustment—each share is worth ten times as much, but you own fewer of them. Often, these splits signal that a company is addressing a low stock price or potential delisting issue. While that can be a warning sign, it doesn’t always signal weakness. The key is to examine the company’s broader financial health, growth strategy, and market trends.