Wearable Devices Ltd. (NASDAQ: WLDS) announced that it will implement a 1-for-3 reverse share split of its ordinary shares and publicly traded warrants, effective at the opening of trading on June 22, 2026. The company stated that the reverse split is intended to increase the per-share trading price of its ordinary shares and regain compliance with Nasdaq’s $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market.
The reverse split, previously approved by shareholders and the board of directors, will reduce the number of outstanding ordinary shares from approximately 6.57 million to 2.19 million and reduce publicly held warrants from approximately 32,886 to 10,962, subject to rounding adjustments. Wearable Devices noted that the transaction will not alter shareholders’ proportional ownership interests, other than minor changes resulting from the treatment of fractional shares, and will include corresponding adjustments to outstanding options, warrants, restricted share awards and equity incentive plans.
Wearable Devices is a growth company pioneering human-computer interaction through its AI-powered neural input touchless technology. The company’s consumer products, the Mudra Band and Mudra Link, are defining the neural input category for wrist-worn devices and brain-computer interfaces. These products enable touch-free, intuitive control of digital devices using gestures across multiple operating systems. The company operates through a dual-channel model of direct-to-consumer sales and enterprise licensing and collaborations, empowering consumers with stylish, functional wearables for enhanced experiences in gaming, productivity, and extended reality (XR). In the business sector, Wearable Devices provides enterprise partners with advanced input solutions for immersive and interactive environments, from augmented reality/virtual reality/XR to smart environments.
The reverse split is a strategic move to maintain its listing on the Nasdaq Capital Market, which is crucial for investor confidence, liquidity, and access to capital markets. For a company focused on cutting-edge AI and neural input technology, a Nasdaq listing provides visibility and credibility with institutional investors and partners. Failure to meet the minimum bid price requirement could have led to delisting, potentially hampering the company’s ability to raise funds and pursue its growth strategy.
The newly launched ai6 Labs ecosystem accelerates the company’s vision by integrating research, products, and AI breakthroughs. By setting the standard for neural input in the XR ecosystem, Wearable Devices aims to shape the future of seamless, natural user experiences across some of the world’s fastest-growing tech markets. The reverse split is a necessary step to ensure that the company can continue to execute its business plan without the distraction of a potential delisting.
Investors and industry observers will be watching to see if the reverse split successfully brings the share price above the $1 threshold and whether the company can sustain that level through its operational performance. The reverse split does not change the underlying value of the company but can affect market perception and trading dynamics. For leaders in business and technology, this move highlights the importance of compliance with exchange requirements and the strategies companies employ to maintain their listing status while pursuing innovation in emerging fields like neural interfaces and AI-driven wearables.
More information about Wearable Devices and its latest news can be found at the company’s newsroom at https://ibn.fm/WLDS. The full press release is available at https://ibn.fm/nXyEK.
