Shares of Barnes & Noble Education (BNED) fell 25% after the operator of U.S. college bookstores executed a 1-for-100 reverse stock split.
The reverse stock split, which is used to artificially raise a share price, lifted Barnes & Noble Education’s stock to $6.99 U.S. from $0.09 U.S. previously.
However, the post-split decline of 25% pushed the stock down to a fresh 52-week low.
Barnes & Noble Education’s stock has now declined 91% over nine consecutive trading days.
The company said it raised more than $100 million U.S. of new equity from the reverse stock split.
Barnes & Noble Education also named Jonathan Shar as its new chief executive officer (CEO), replacing Michael P. Huseby who resigned effective immediately.
Shar was previously president of Barnes & Noble College and executive vice president of BNED Retail, where he oversaw the company’s campus bookstores and e-commerce sites.
The reverse stock split was part of Barnes & Noble Education’s plan to regain compliance with the New York Stock Exchange (NYSE), which requires that shares close above $1 for 30 consecutive days or face being delisted.
In the past five years, the stock of Barnes & Noble Education has declined 99%.
