LanzaTech Implements Reverse Stock Split to Regain Nasdaq Listing Compliance.

LanzaTech, a carbon capture and transformation company, will implement a 1-for-100 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement. The split will be effective August 18, 2025, and the company's stock will begin trading on a post-split basis on August 19, 2025. The primary objective is to regain Nasdaq listing compliance.

LanzaTech (NASDAQ: LNZA), a carbon capture and transformation company, has announced a 1-for-100 reverse stock split as part of its efforts to regain compliance with Nasdaq's minimum bid price requirement. The split will be effective on August 18, 2025, at 5:00 p.m. Eastern Time, and the company's stock will begin trading on a post-split basis on August 19, 2025 [1].

The primary goal of the reverse stock split is to bring the company's stock price in line with Nasdaq's listing requirements. The split will reduce the number of outstanding shares from 600 million to 25.8 million, while simultaneously decreasing the par value of each share from $0.0001 to $0.0000001 [1].

LanzaTech's decision to implement a reverse stock split comes amidst significant financial challenges. The company has experienced a dramatic decline in stock price, trading well below $1 for an extended period. The reverse stock split is an unusual step, as it involves a 1-for-100 ratio, which is far larger than the more common 1-for-5 or 1-for-10 ratios typically seen in market corrections [1].

The reverse stock split will not alter the percentage interest of existing shareholders, but it will result in a technical adjustment in their holdings. Any fractional shares resulting from the split will be rounded up to the nearest whole share [1].

While the reverse stock split aims to address the symptom of low share price, it does not tackle the underlying business challenges causing the decline. Reverse splits often fail to resolve fundamental operational issues and can lead to continued share price erosion after implementation. The market typically interprets such extreme measures as a red flag, potentially resulting in additional selling pressure once the split takes effect [1].

LanzaTech's authorized share increase from 600 million to 2.58 billion pre-split (which becomes 25.8 million authorized shares post-split) also raises concerns. This increase provides capacity for significant future dilution, which could further devalue existing shareholders' stakes if the company needs to raise additional capital in the near term [1].

In contrast, Polyrizon Ltd. (Nasdaq: PLRZ) recently regained compliance with Nasdaq listing requirements by meeting the minimum bid price requirement and satisfying the conditions set by the Nasdaq Hearings Panel [2]. Polyrizon will continue to trade on the Nasdaq Capital Market under the ticker symbol "PLRZ."

References:
[1] https://www.stocktitan.net/news/LNZA/lanza-tech-announces-reverse-stock-split-as-part-of-nasdaq-jki3o7lkciwb.html
[2] https://www.ainvest.com/news/polyrizon-returns-nasdaq-compliance-meeting-listing-requirements-2508/