iOThree Limited has announced a 1‑for‑10 reverse share split of its ordinary shares, effective November 10, 2025. The split will consolidate the company’s share base, change its CUSIP to G4940T112, and set a new par value of $0.0625 per share.
Prior to the split, the company had 7,333,257 ordinary shares and 18,316,743 class A shares. After the split, the ordinary share count will be approximately 733,326 and class A shares will be about 1,831,675. The company will round any fractional shares up to the nearest whole share, and all outstanding warrants will be adjusted proportionally.
The reverse split is a response to a Nasdaq deficiency notice issued on June 3, 2025, after the company’s stock price remained below the $1.00 minimum bid requirement for 30 consecutive business days. Since its IPO on April 10, 2025, the stock has fallen well below $1, and the company’s fiscal year ended March 31, 2025, reported a net loss of roughly $231,000, a decline from a $4,000 loss the previous year, and a gross profit margin that slipped from 21.5% to 17.8%.
Management emphasized that the reverse split is a cosmetic measure designed to restore Nasdaq compliance and avoid delisting. The company noted that the split will not dilute existing shareholders but may reduce liquidity due to the smaller number of shares. Investors reacted with skepticism, as reflected in a negative pre‑market response on the day of the announcement.
While the reverse split may temporarily improve the appearance of the company’s share price, it does not address the underlying financial challenges. The decline in gross margin and the persistent net loss signal that the company must strengthen its core maritime digital solutions and improve operational efficiency to regain investor confidence over the long term.
iOThree’s decision to execute the reverse split underscores the urgency of meeting regulatory requirements, but the company’s future prospects will hinge on its ability to reverse the downward trend in profitability and restore a sustainable growth trajectory.
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