Sky Quarry Inc. (NASDAQ: SKYQ) completed a 1‑for‑8 reverse stock split of its common shares, consolidating eight existing shares into one. The split became effective at 11:59 p.m. Eastern Time on March 15, 2026, with trading on a split‑adjusted basis beginning March 16, 2026.
The board approved the split on March 5, 2026, and filed a Certificate of Amendment with the Delaware Secretary of State the same day. The action reduces the number of shares outstanding from roughly 29.96 million to about 3.75 million, raising the per‑share price to approximately $1.00 and restoring compliance with Nasdaq’s minimum average closing price requirement.
The reverse split follows a period of declining revenue and mounting losses. For the year ended December 31, 2024, Sky Quarry reported a net loss of $14.7 million, up from a $4.4 million loss in 2023, and revenue fell 54% to $23.3 million from $50.7 million the prior year. The company attributes the downturn to lower WTI oil prices, refinery refurbishment, and supply‑chain constraints that reduced output from its waste‑to‑energy operations.
Management emphasized that the reverse split is a short‑term measure to meet listing requirements while the company continues to pursue growth in its core waste‑recycling and energy‑generation segments. CEO David Sealock noted that the company remains focused on expanding modular extraction facilities and leveraging digital‑asset strategies to monetize power capacity, though he acknowledged the need to strengthen financial resilience.
Market reaction to the announcement was sharply negative, with the stock falling over 20% in pre‑market trading on March 6. Analysts cited the reverse split as a signal of ongoing financial distress and a lack of confidence in the company’s ability to sustain profitability, outweighing any short‑term liquidity benefits.
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