Vision Marine Technologies Inc. (VMAR) Stock: Slides Over 24% After 1-for-40 Reverse Split Approval

TLDR

• VMAR stock trades near $0.1478 during market hours
• Vision Marine approves a 1-for-40 reverse stock split
• Split becomes effective at market open on January 14, 2026
• Move targets Nasdaq’s $1.00 minimum bid requirement
• Outstanding shares drop sharply after consolidation

Vision Marine Technologies Inc. ($VMAR) stock traded at $0.1478, down more than 24% during market hours, after the company announced a major corporate action aimed at preserving its Nasdaq listing.

Vision Marine Technologies Inc., VMAR

The electric marine propulsion company said its board of directors approved a 1-for-40 reverse stock split, a move designed to lift the per-share price above the exchange’s minimum bid threshold.

The reverse stock split is scheduled to take effect when the market opens on January 14, 2026. Following the Effective Date, Vision Marine’s common shares will trade on a split-adjusted basis under the existing ticker symbol “VMAR.” The company also confirmed a new CUSIP number, 92840Q400, for its post-split common shares.

Reverse Stock Split Details and Timing

Under the approved plan, every forty issued and outstanding common shares will be automatically consolidated into one common share. Before the split, Vision Marine has approximately 37,008,735 common shares outstanding. After the consolidation, that figure will drop to about 925,218 common shares, subject to minor adjustments from the rounding of fractional shares.

The board approved the reverse split ratio on December 26, 2025, and later confirmed January 14, 2026, as the Effective Date during a January 2, 2026, board action. Trading will continue on Nasdaq under the same symbol, with pricing adjusted to reflect the reduced share count.

Nasdaq Compliance Drives the Decision

The primary purpose of the reverse stock split is to address Vision Marine’s risk of non-compliance with Nasdaq Listing Rule 5550(a)(2). That rule requires listed companies to maintain a minimum bid price of $1.00 per share. With VMAR trading well below that threshold, the board opted for a reverse split as a corrective measure.

By reducing the number of outstanding shares, the company aims to increase its per-share market price without changing its overall market capitalization. Management framed the move as a structural adjustment rather than a reflection of operational performance.

Impact on Shareholders and Equity Awards

The reverse stock split will not change the number of authorized common shares, which will remain limitless, nor will it affect the par value of the stock. All shares issued following the split will remain fully paid and non-assessable.

Proportionate adjustments will be made to the exercise prices and share counts tied to Vision Marine’s outstanding equity awards. The same approach applies to shares issuable under the company’s equity incentive plans, ensuring that holders of options or other awards retain the same relative economic exposure as before the split.

Treatment of Fractional Shares and Transfer Process

Vision Marine will not issue fractional shares as part of the reverse stock split. Any shareholder who would otherwise be entitled to a fractional interest will instead receive one whole common share. This rounding approach simplifies the post-split share structure and avoids the need for cash payments in lieu of fractions.

Odyssey Transfer and Trust Company will serve as the exchange agent for the transaction. Shareholders holding shares electronically in book-entry form, or through banks, brokers, or other nominees, do not need to take any action. Positions held through intermediaries will be adjusted automatically to reflect the new share count.

Market Reaction and Outlook

The sharp decline in VMAR shares on the day of the announcement reflects investor sensitivity to dilution concerns and ongoing listing risks. Reverse stock splits often draw mixed reactions, as they address compliance issues but do not resolve underlying business challenges.

For Vision Marine, the split provides time and flexibility to execute its strategy while maintaining access to public markets. Investor focus now shifts to whether the company can stabilize its share price above Nasdaq’s minimum requirement and demonstrate progress in its electric marine technology roadmap in the months following the split.

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