MKDWELL Tech shares fall 25.24% after-hours as 30-to-1 share combination announced to regain Nasdaq compliance.

MKDWELL Tech Inc. fell 25.24% in after-hours trading following the announcement of a 30-for-1 share combination, a reverse stock split aimed at regaining Nasdaq compliance. The move reduces outstanding shares from 106.46 million to approximately 3.55 million, signaling financial strain as reverse splits are often associated with efforts to avoid delisting. Investors interpreted the action as a bearish indicator of the company’s capital structure challenges, triggering a sharp sell-off. The adjustments to warrants, convertible notes, and conversion rights further underscore the restructuring’s complexity, aligning with market skepticism. The company’s proactive stance to meet Nasdaq requirements contrasts with the negative investor sentiment, as the reverse split historically correlates with declining investor confidence.