Forge Global Holdings, Inc. (NYSE: FRGE), a leading global private securities marketplace, has announced that its Board of Directors has approved a 1-for-15 reverse stock split of its Common Stock, effective April 14, 2025.

The company expects its shares to begin trading on a split-adjusted basis on the New York Stock Exchange starting April 15, 2025, maintaining its “FRGE” ticker symbol with a new CUSIP number.

The reverse stock split, approved by stockholders on March 27, 2025, is primarily intended to bring Forge into compliance with the NYSE’s minimum bid price requirement for continued listing. Stockholders had authorized a potential split ratio ranging from 1-for-3 to 1-for-50, with the Board ultimately selecting the 1-for-15 ratio.

Under the terms of the split, every fifteen current shares of Forge’s Common Stock will automatically convert into one new share.

No fractional shares will be issued; stockholders who would otherwise be entitled to a fractional share will instead receive cash equal to the fair market value of that fractional share, determined by the closing price on April 11, 2025, adjusted for the split.

Proportional adjustments will be made to equity under the company’s incentive plans, including the number of shares awarded and available, as well as exercise prices and share counts for outstanding stock options, restricted stock units, and other equity securities. All outstanding warrants will also be adjusted according to their terms.

Continental Stock Transfer & Trust Company is serving as the exchange agent for the reverse stock split. Stockholders with book-entry shares will receive a transaction statement regarding their post-split ownership and aren’t required to take action.

Similarly, those holding shares through banks, brokers, custodians, or other nominees will have their positions automatically adjusted, though the processes may vary by institution.

Opinion

This reverse stock split represents a defensive maneuver by Forge Global to maintain its NYSE listing rather than a sign of corporate strength. The substantial 1-for-15 ratio—on the higher end of the approved range—suggests significant pressure on the company’s share price.

While technically this action doesn’t change Forge’s fundamental value, it often signals underlying concerns about market perception and may indicate challenges in the private securities marketplace that Forge serves.

The timing is particularly noteworthy as it coincides with broader market volatility affecting growth companies. Forge’s decision to implement this measure might preserve its listing status temporarily, but doesn’t address any fundamental business challenges that led to the share price decline. Shareholders should recognize this as a compliance-driven decision rather than a strategic initiative that enhances value.

The most promising aspect is that management secured stockholder approval for this action well in advance, indicating some level of planning rather than a last-minute scramble.

However, investors should watch carefully for any subsequent announcements about business performance or strategic shifts that might provide better insight into Forge’s actual trajectory beyond this financial engineering.

News Source: Forge Global.