Focus Universal Inc. (Nasdaq: FCUV), a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G, announced that its Board of Directors has approved a 1-for-10 reverse stock split of its common stock. The decision, made by unanimous written consent on January 27, 2026, aims to boost the company's share price and maintain compliance with Nasdaq's minimum bid price requirement.
The reverse split will become effective at 12:01 a.m. Eastern Standard Time on February 9, 2026, and will be reflected in the marketplace at the open of business on that date. Shares will continue trading under the symbol "FCUV" but will be assigned a new CUSIP number, 34417J 500. As of January 27, 2026, the company had 9,865,249 shares outstanding; post-split, approximately 986,524 shares will be outstanding, subject to adjustment for fractional shares. No fractional shares will be issued; instead, stockholders will receive cash in lieu of fractional shares. Proportional adjustments will also be made to equity awards, securities, and warrants, including exercise prices and the number of authorized shares.
Focus Universal's transfer agent, VStock Transfer, LLC, will serve as exchange agent and paying agent for the reverse split. Registered stockholders holding shares in book-entry form need not take any action, and those holding shares in brokerage accounts will have their positions automatically adjusted. Additional details are available in the company's 8-K filed with the Securities and Exchange Commission on February 5, 2026, a copy of which is accessible at www.sec.gov.
Reverse stock splits are often used by companies to increase their share price to meet exchange listing standards or to make shares more attractive to institutional investors. For Focus Universal, which has developed five patented technology platforms with 26 patents and patents pending, the move could enhance its marketability and provide a more stable trading environment. The company's technologies aim to reduce costs, product development timelines, and energy usage while improving range, speed, efficiency, and security in IoT and 5G applications.
The reverse split underscores the company's commitment to maintaining its Nasdaq listing and positioning itself for future growth. While reverse splits can sometimes be viewed negatively by investors due to the implication of a low stock price, they can also be a necessary step for companies to regain compliance and attract a broader investor base. For Focus Universal, the split reduces the number of outstanding shares without affecting the underlying value of the company, though the market's reaction will depend on broader sentiment and the company's performance.
Forward-looking statements in the press release highlight risks and uncertainties that could cause actual results to differ materially, including market conditions and the completion of public offerings. Focus Universal disclaims any obligation to update forward-looking statements. For further inquiries, the company's investor relations can be reached at 626-272-3883 or ir@focusuniversal.com, though these contacts are not included in the article per editorial guidelines.
