TLDR
- Paranovus stock drops over 32% intraday, sliding to $0.0245 on heavy early selling.
- The company will execute a 1-for-100 reverse share split on December 18, 2025.
- Outstanding shares will shrink from 350 million to nearly 3.5 million post-split.
- The move targets Nasdaq’s $1.00 minimum bid price listing requirement.
- Paranovus now centers operations on TikTok-driven e-commerce after exiting legacy units.
Paranovus Entertainment Technology Ltd. (PAVS) dropped sharply by 32.3% intraday, hitting $0.0245 by 12:34 PM EST on Monday.
Paranovus Entertainment Technology Ltd., PAVS
The fall followed a wave of aggressive selling that started before 10:00 AM and continued into the afternoon. The trading volume remained low after the initial selloff, with minimal recovery throughout the session.
This price movement comes just days before the company’s planned 1-for-100 reverse share split scheduled for December 18, 2025. The selloff signals market uncertainty around the split and the company’s future share performance post-adjustment. Paranovus aims to lift its share price and regain Nasdaq listing compliance through the reverse split.
The share price has hovered below the $1.00 minimum bid price required by Nasdaq for several months. This reverse split is designed to push the adjusted share price closer to that compliance threshold. However, share consolidation often raises short-term volatility, especially when companies trade under $1.00.
Reverse Share Split Set for December 18 to Meet Nasdaq Compliance
Paranovus confirmed that the 1-for-100 reverse share split will take effect on Thursday, December 18, 2025, at market open. Post-split, each 100 Class A Ordinary Shares will convert into 1 new share, and the par value will increase to $1.00. The new shares will continue trading under the ticker “PAVS” with a new CUSIP number, G4289N122.
The reverse split will reduce the number of outstanding Class A shares from 350 million to about 3.5 million. This action intends to boost the share price approximately 100 times the current trading level, though outcomes are not guaranteed. The company clarified it cannot assure any price level post-split or guarantee continued price strength.
No fractional shares will be issued, as all fractions will round up to the nearest whole share. Shareholders holding certificates will receive instructions from VStock Transfer LLC, the company’s transfer agent. Those holding shares in book-entry or brokerage accounts need not take any action.
Strategic Shift and E-Commerce Expansion Define New Direction
Paranovus is repositioning itself in the digital commerce space, focusing on TikTok-related e-commerce services through its subsidiaries. In March 2025, it acquired controlling interests in Bomie Wookoo Inc., a New York-based e-commerce solutions provider. This move aligns with its strategy to capitalize on social commerce and online retail growth.
The company has exited all legacy businesses to sharpen its focus on e-commerce innovation and platform integration. It ceased its automobile sales business in July 2024 and fully exited advertising and internet services in September 2023. These steps represent a full pivot to technology-driven commerce operations.
This transformation aims to create a leaner and more focused business model, aligned with high-growth online retail sectors. Consistent performance and stability remain crucial for rebuilding market confidence. The reverse split may reset the valuation landscape, but long-term execution will define its trajectory.
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