Paranovus Announces 1-for-100 Reverse Split, Raises $10M and Targets $15–20M Jabanero Deal
PAVS•Paranovus Entertainment Technology announced a 1-for-100 reverse share split effective June 29, cutting outstanding shares from about 85.7 million to roughly 856,851 and triggering a 33% drop to record lows. In early June, the company raised $10 million via a registered direct offering for acquisitions, including a potential $15–20 million purchase of Jabanero.
1. Second 1-for-100 Reverse Share Split
Paranovus announced a second reverse split this year, implementing a 1-for-100 consolidation effective June 29 to boost its per-share trading price above Nasdaq's $1 minimum. The move cuts the share count from approximately 85.7 million to about 856,851 outstanding, following a 1-for-12 split in March 2026 and a 1-for-100 split in December 2025 to maintain listing compliance.
2. $10M Registered Direct Offering and Acquisition Strategy
In early June, the company secured about $10 million through a registered direct offering of 50 million Class A ordinary shares and pre-funded warrants priced at $0.20 each. Management plans to deploy these proceeds for strategic acquisitions and working capital needs, notably pursuing a potential $15–20 million acquisition of women's activewear brand Jabanero.
3. Stock Performance and Investor Sentiment
Following the split announcement, shares plunged over 33% at the opening bell to an all-time low and have struggled to regain the $1 trading level required for Nasdaq compliance. Retail sentiment turned bearish, with the stock down more than 93% since its March reverse split, underscoring investor concerns over dilution and growth prospects.
