Why Did Bon Natural Life Plunge 13.33% Amid Reverse Split?

On May 15, 2025, Bon Natural Life experienced a significant drop of 13.33% in pre-market trading, marking a notable decline in its stock performance.

Bon Natural Life has announced a 1-for-25 reverse stock split, effective from May 19, 2025. This move is aimed at increasing the company's share price, which has been trading at a very low level. The reverse split will consolidate 25 shares into one, potentially making the stock more attractive to investors by meeting the minimum share price requirement for listing on the Nasdaq.

In addition to the reverse stock split, Bon Natural Life has been focusing on innovative health products. The company recently launched a sleep aid line utilizing a patent-pending delivery system to enhance the absorption of sulforaphane, a compound found in broccoli. This compound is known for its various health benefits, including anti-cancer properties, inflammation reduction, and improved sleep quality. The company's CEO, Yongwei Hu, expressed optimism about the product's market potential, highlighting its ability to address critical unmet needs in sleep health.

Despite these efforts, Bon Natural Life faces significant challenges. The company's shares have plummeted by nearly 98% over the past year, and there is a high likelihood that it will be delisted from the Nasdaq due to its low share price. The company has filed a notice of appeal and requested a hearing with Nasdaq officials, but the chances of success are uncertain. Additionally, a recent 1-for-25 reverse stock split did not help in boosting the share price significantly.

On a more positive note, Bon Natural Life has secured a $12 million supply agreement with Shanghai Yunsheng to develop and distribute supplements made from compounds found in apples. This partnership could provide a new revenue stream and diversify the company's product offerings. However, the company's market capitalization remains relatively low, indicating ongoing financial challenges.