Robo.ai Inc. (Nasdaq: AIIO) shares fell sharply on Friday after the UAE-based technology company announced a proposed 1-for-25 reverse stock split, with the consolidation scheduled to take effect on November 6, 2026, subject to shareholder approval.

AIIO closed the regular session at $0.8635, down 10.80%, and slid a further 6.49% to $0.8075 in after-hours trading.

Stock Extends Friday's Decline

The Nasdaq-listed stock endured a steep decline during Friday's regular session, and after-hours selling pushed the Class B shares further below the exchange's $1 minimum bid requirement. Robo.ai released its reverse split announcement shortly after the close of regular trading.

Nasdaq's continued-listing standards require stocks to maintain a minimum closing bid price of $1, and companies that trade below that level for 30 consecutive business days generally receive a deficiency notice, with a defined compliance period — typically 180 days — to regain compliance before facing possible delisting. Reverse splits are among the most common tools companies use to lift a sub-$1 share price back above the threshold.

Under the proposal, shareholders would receive one new share for every 25 shares currently held. The change would raise the quoted share price mechanically without increasing the company's underlying market value, although the eventual trading price could differ from the mathematical adjustment.

The consolidation would cover both share classes, including the publicly traded Class B shares. Robo.ai would retain the AIIO ticker when adjusted trading begins on November 6, and the company has assigned its Class B shares the new CUSIP number G6693P130.

Reverse Split Would Cut Outstanding Shares

Robo.ai reports 13,817,501 Class A shares and 222,116,290 Class B shares outstanding. After the consolidation, those totals would fall to approximately 552,701 and 8,88,684 shares, respectively — a substantial reduction in the company's shares outstanding.

The company expects the transaction to affect shareholders proportionately across both share classes. Existing options, warrants, and applicable convertible securities would be adjusted under their terms, and ownership percentages would generally remain unchanged apart from potential fractional share adjustments.

The proposal would also raise each ordinary share's stated par value from $0.002 to $0.05. Combined with the consolidation, which would lower authorized shares from two billion to 80 million, the changes are designed to preserve the company's authorized capital at $4 million.

Shareholders Face October 26 Vote in Dubai

Robo.ai has scheduled an extraordinary general meeting for October 26 at Meydan Grandstand in Dubai. Shareholders may also participate through an online webcast and submit their votes remotely. Only holders of record as of October 14 are entitled to vote, with each Class A share carrying 25 votes and each Class B share carrying one — a weighted structure that concentrates voting power with Class A holders.

In addition to the reverse split, shareholders will consider expanding authorized shares from 80 million to 385 million, an increase that would establish 35 million authorized Class A shares and 350 million Class B shares. The agenda also includes adopting revised corporate governing documents following the proposed capital changes.

Robo.ai previously completed a 1-for-20 reverse split in April 2026 in an effort to address Nasdaq's minimum bid requirement. If approved at the October 26 meeting, the latest proposal would mark the company's second consolidation of the year, with adjusted AIIO trading scheduled to begin on November 6.

Source: Blockonomi