Momentus Inc. (MNTS) stock got hammered Monday after the company dropped news of a substantial reverse stock split that'll drastically reshape its share structure.
The Mechanics
Here's what's happening: Momentus is executing a 1-for-17.85 reverse stock split of its Class A common stock. The split becomes effective after the market closes on December 17, 2025, with split-adjusted trading kicking off December 18. Momentus will continue trading on the Nasdaq Global Select Market under the same "MNTS" ticker.
Every 17.85 shares currently outstanding will automatically combine into a single share. This consolidation shrinks the total share count from roughly 25 million down to approximately 1.4 million. Your slice of the pie stays the same percentage-wise, though fractional shares get rounded up to the nearest whole share. Nobody's getting fractional shares in their account.
The company's public warrants, which trade under "MNTSW," will also get proportionately adjusted, along with outstanding equity-based awards and benefit plan shares.
Why Do This?
Stockholders approved this split at a special meeting back on September 17, 2025. The company's rationale is straightforward: stay compliant with Nasdaq's $1.00 minimum bid price requirement. When your stock's trading at 45 cents, that compliance threshold becomes a real problem. Beyond avoiding delisting, Momentus believes a higher per-share price will make the stock more appealing to institutional and retail investors who often avoid penny stocks.
Market Reaction
Investors weren't exactly thrilled. Shares cratered 47.12% to 45 cents following the announcement, suggesting the market views this as a distress signal rather than a confidence-building move.
