Mobix Labs executes 1-for-10 reverse stock split

IRVINE, Calif. - Mobix Labs, Inc. (NASDAQ:MOBX) announced its board of directors approved a 1-for-10 reverse stock split of its Class A and Class B common stock, according to a press release statement.

The reverse split will take effect at 4:00 p.m. Eastern Time on Sunday, with trading on a post-split adjusted basis expected to begin Monday. The action follows stockholder approval at the company’s annual meeting held on March 23, 2026.The move comes as shares trade at $0.28, down 27% over the past week and 70% over the past year. According to InvestingPro, which tracks over 1,400 US stocks with comprehensive analysis, the company carries a "WEAK" financial health rating and is quickly burning through cash with a current ratio of just 0.11.

The reverse split will automatically convert every 10 shares of common stock into one share. Stockholders who would hold fractional shares will receive cash payment based on the closing sale price on The Nasdaq Capital Market on April 6, 2026, adjusted for the split.

The company stated the reverse split is intended to increase the per share trading price to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.

The reverse split will reduce outstanding shares from approximately 103,255,848 shares of Class A common stock to approximately 10,325,584 shares, and from 2,004,901 shares of Class B common stock to approximately 200,490 shares. The total authorized number of shares will remain unchanged.

Proportional adjustments will be made to exercise and conversion prices of outstanding stock options, warrants, and convertible securities, as well as to shares issued and issuable under the company’s stock incentive plans.

Stockholders holding shares electronically in book-entry form are not required to take action. Those owning shares through a bank, broker, or other nominee will have positions automatically adjusted, subject to individual broker processes.

Mobix Labs is a fabless semiconductor and connectivity company focused on defense, aerospace, and high-reliability applications.

In other recent news, Mobix Labs, Inc. announced a strategic shift towards the unmanned aircraft system market, highlighting its involvement in two drone-related projects. This includes a field deployment phase of a drone-based airborne sensing platform and a feasibility program for anti-drone smart munitions technology. Additionally, Mobix Labs has been selected by a munitions manufacturer for a feasibility program focused on anti-drone applications, marking its entry into the smart munitions category. The program aims to evaluate technology designed to counter drone threats effectively. In another development, Mobix Labs continues its production of communications hardware for secure network systems used on U.S. Navy ships, supporting a multi-year defense program with a prime contractor. Furthermore, at its recent annual meeting, all proposals presented to shareholders were approved, representing approximately 52.86% of the voting power. These developments underscore Mobix Labs’ ongoing commitment to expanding its technological capabilities within the defense and aerospace sectors.

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