Northann Corp. to implement 1-for-8 reverse stock split in October

Northann Corp. (NYSE American:NCL) announced that its board of directors has approved a 1-for-8 reverse stock split of both its common and Series A preferred stock. The reverse split is scheduled to take effect on October 7, 2025. The company’s stock, currently trading at $0.17 with a market capitalization of approximately $31 million, has declined nearly 36% year-to-date. According to InvestingPro analysis, the company shows concerning financial health indicators, with 8 additional key insights available to subscribers.

According to a statement included in a recent SEC filing, the reverse stock split was authorized to increase the per-share price of Northann Corp.’s common stock and maintain its listing on the NYSE American exchange. The decision follows previous approval from stockholders at the company’s annual general meeting held on December 31, 2024, which granted the board discretionary authority to implement a reverse split within a ratio range of 1-for-3 to 1-for-20.

On September 17, 2025, Lin Li, the company’s CEO, chairman, and sole holder of Series A preferred stock, authorized the board to proceed with the reverse stock split at the 1-for-8 ratio. The board subsequently approved the action on the same day.

Under the terms of the reverse stock split, every eight shares of issued and outstanding common or preferred stock will be converted into one share of the respective class. The reverse split will be applied uniformly to all outstanding shares, and the exchange ratio will be the same for both common and preferred stock. Stockholders will receive fractional shares rounded up to the nearest whole share.

The company stated that the reverse stock split will not affect stockholders’ percentage ownership, voting rights, or the par value of the shares. The number of authorized shares will remain unchanged. The new CUSIP number for the post-split common stock will be 66373M 408.

Northann Corp. plans to amend its Articles of Incorporation and Certificate of Designation of Preferred Stock to reflect the reverse stock split.

This information is based on a statement included in Northann Corp.’s recent SEC filing.

In other recent news, Northann Corp. has regained compliance with NYSE American listing requirements after filing its delayed Form 10-Q for the fiscal quarter ended March 31, 2025. The NYSE American LLC acknowledged the submission of the quarterly report, confirming that Northann is now in compliance with Section 1007 of the NYSE American Company Guide. Consequently, the company will be removed from the list of late filers, and the “LF” indicator will no longer be associated with its profile. Additionally, Northann disclosed that its 2024 audit report included a going concern qualification from its independent registered public accounting firm. This disclosure was made to comply with specific sections of the NYSE American Company Guide that mandate transparency in such cases. These recent developments are crucial for investors monitoring Northann’s regulatory compliance and financial disclosures.

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