Allbirds () completed a 1-for-20 reverse stock split Wednesday evening, a move meant to maintain the footwear and apparel maker and retailer's listing on the Nasdaq.

A reverse split combines a set number of shares into a smaller number; in Allbirds' case, investors received one share for every 20 they owned. This reduces the total number of shares and, because the market cap of the company remains the same, raises the price. Each shareholder's overall percentage stake in the company also remains the same. 

Shareholders who held a number of shares not divisible by 20 received a cash payout instead of fractional shares. ꦰ

Both the NYSE and the Nasdaq require companies to maintain a minimum share price of $1. If a company's stock falls below that threshold for 30 consecutive trading days, it receives a deficiency notice and is given a set period (180 days on Nasdaq, or six months on th💃e NYSE) to raise its share price.

On Wednesday, Allbirds closed at 57 cents, below the Nasdaq’s minimum requirement. Its shares fell about 15% on Thursday, closing a bit below $10 apiece. The stock is down some 60% this year.