Opendoor Stock Soars As It Dodges Delisting, Cancels Reverse Split

Opendoor Technologies, Inc. (NASDAQ:OPEN) stock climbed Monday after the company delivered some much needed good news to investors last week. 

• OPEN stock is on the move. See real-time price here.

What To Know: After months of uncertainty over whether the company would remain listed on the Nasdaq, Opendoor announced last Friday that it has secured compliance with the exchange's rules and scrapped a contentious reverse stock split in the process.

Opendoor's issue stemmed from the minimum bid price requirement: Nasdaq requires listed companies to maintain a share price above $1 to remain listed on the exchange. 

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Opendoor stock had been flirting dangerously close to the $1 threshold and the company had received a warning about a possible delisting. 

Company management had scheduled a special shareholder meeting to approve a reverse stock split in an attempt to regain compliance with the minimum bid price requirement. The move is often unpopular with investors because it boosts share price by reducing the number of outstanding shares without changing the company's fundamentals.

In a turnaround that surprised many, Opendoor's stock managed to stay above the $1 mark for the minimum consecutive trading days required by Nasdaq rules. 

As a result, the company received official word: it's back in compliance, and there is no need for a reverse split. 

Opendoor's board of directors announced last Friday that it had decided to cancel the special meeting of stockholders scheduled for Aug. 27, intended for shareholders to vote on two proposals related to the proposed reverse stock split. 

Eric Jackson, the hedge fund manager who has rallied retail investors around Opendoor stock, celebrated the cancellation of the proposed stock split in a social media post on Friday. 

OPEN Price Action: Opendoor Technologies shares were up 5.00% at $2.20 at the time of publication on Monday, according to Benzinga Pro.

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