Cycurion Declines Reverse Split, Alleges Market Abuse
Cycurion's Board and Management have decided against a 7-for-1 reverse stock split, stating it is not in the best interest of shareholders and would not resolve underlying issues. The company cited past negative experiences with reverse splits and evidence of suspected market manipulation. Cycurion is focusing on business growth, including recent acquisitions that added $7.6 million in revenue, and secured a new $58 million contract. The company is also investigating and contacting NASDAQ regarding alleged market abuse, including unusual trading volumes and short-exempt sales.
Key Highlights
- Declined 7-for-1 reverse stock split, citing shareholder best interest and market abuse concerns.
- Completed two acquisitions (Digital Ally, Secuvant) adding $5.1M and $2.5M revenue respectively.
- Grew organic revenue to approximately $15.5M.
- Increased annual revenue run rate to approximately $28M.
- Secured new 10-year contract valued at $58M.
- Built approximately $8M of contracted backlog.
- Investigating suspected market abuse, including 89.9M shares traded against 86.5M float in Oct 2025.
- Noted surge in "short exempt" sales on restricted days in March 2026.
Price Impact
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