Cycurion (CYCU) announced that its Board of Directors and management have decided not to proceed with a 7-for-1 reverse stock split, concluding it is not in the best interest of shareholders. The company will instead focus on fundamental business growth and is intensifying actions against suspected illegal trading and market manipulation of its stock.
Key Details
- Reverse Split Declined: Management believes another reverse split would not provide durable price support and could harm shareholders, citing a previous split in 2025 as a precedent.
- Market Abuse Allegations: The company has collected evidence of what it views as market manipulation, including a single session in October 2025 where trading volume exceeded 100% of the public float and a surge in "short exempt" sales during a restricted period on March 16-17, 2026.
- Company Actions: Cycurion is in contact with NASDAQ regarding the trading activity and plans to use legal and regulatory avenues to address the alleged misconduct.
- Business Focus: Management reiterated its focus on growth, highlighting an annual revenue run rate of approximately $28 million, a new 10-year contract valued at $58 million, and an $8 million contracted backlog.