Paranovus Entertainment Technology Ltd. (NASDAQ: PAVS) announced a 1‑for‑12 reverse share split that will take effect on the opening of the Nasdaq Capital Market on March 31, 2026. The board approved the split on March 18, 2026, and the new par value will rise from $0.000001 to $0.000012 per share. The split will reduce the number of shares outstanding from roughly 11.3 million to about 945,000, and the company’s new CUSIP will be G4289N130.
The reverse split is part of Paranovus’s ongoing effort to maintain compliance with Nasdaq’s minimum bid‑price and filing requirements. The company had previously received a delisting notice, and a 1‑for‑100 reverse split in December 2025 helped it regain compliance in January 2026. The current 1‑for‑12 split is the second reverse split in a short period, underscoring the company’s continued challenges in keeping its share price above the exchange’s threshold.
Investors reacted negatively to the announcement, citing concerns that frequent reverse splits signal financial distress and a lack of substantive improvement in the company’s fundamentals.
In the six months ended September 30, 2025, Paranovus reported a 18,037% year‑over‑year increase in revenue to $12.4 million, driven largely by its U.S. subsidiaries’ e‑commerce product sales and TikTok‑related e‑commerce solutions. The company also noted a meaningful improvement in gross profit and significant margin expansion, reflecting scale gains. Despite this revenue growth, the company’s market capitalization was only about $340,000 as of March 27, 2026, and it has faced ongoing compliance and filing issues.
CEO Xiaoyue Zhang said in December 2025 that the company’s interim performance “showcases revenue momentum and accelerating profit formation, highlighting fast transitional growth cycle of the Company. We remain committed to advancing shareholder value through continued innovation, disciplined execution, and sustainable expansion.”
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