Wearable Devices Ltd. Announces 1-for-3 Reverse Share Split to Regain Nasdaq Compliance

Wearable Devices Ltd. (NASDAQ: WLDS) announced Thursday that it will execute a 1-for-3 reverse share split of its ordinary shares and publicly traded warrants, effective at the opening of trading on June 22, 2026. The company stated that the reverse split is intended to increase the per-share trading price of its ordinary shares and regain compliance with Nasdaq’s $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market.

The reverse split, which was previously approved by shareholders and the board of directors, will reduce the number of outstanding ordinary shares from approximately 6.57 million to 2.19 million and reduce publicly held warrants from approximately 32,886 to 10,962, subject to rounding adjustments. Wearable Devices said the transaction will not alter shareholders’ proportional ownership interests, other than minor changes resulting from the treatment of fractional shares, and will include corresponding adjustments to outstanding options, warrants, restricted share awards and equity incentive plans.

For Wearable Devices, a growth company pioneering human-computer interaction through AI-powered neural input touchless technology, maintaining the Nasdaq listing is crucial for accessing capital markets and investor visibility. The company’s consumer products – the Mudra Band and Mudra Link – are defining the neural input category for wrist-worn devices and brain-computer interfaces, enabling touch-free, intuitive control of digital devices using gestures across multiple operating systems. Operating through a dual-channel model of direct-to-consumer sales and enterprise licensing, Wearable Devices serves both consumers and business partners in gaming, productivity, and extended reality (XR) markets.

The newly launched ai6 Labs ecosystem further accelerates the company’s vision by integrating research, products, and AI breakthroughs. However, the need for a reverse split indicates that the company’s stock price has struggled to stay above the $1.00 threshold, a common challenge for many small-cap tech firms. The reverse split is a standard mechanism to address bid price deficiencies, but it does not change the underlying fundamentals of the business.

Shareholders should note that while the proportional ownership remains largely unchanged, the reduced share count could affect liquidity and trading dynamics. The company’s ordinary shares and warrants trade on the Nasdaq Capital Market under the symbols “WLDS” and “WLDSW,” respectively. For more details, the full press release is available at https://ibn.fm/nXyEK.

This move comes as Wearable Devices continues to develop its neural input technology, which has applications in consumer electronics, enterprise, and the growing XR ecosystem. The company’s ability to maintain its Nasdaq listing is vital for ongoing investor confidence and access to public markets. The reverse split is set to take effect June 22, and the company will need to sustain a bid price above $1.00 for at least 10 consecutive business days to fully regain compliance.

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