Lifestyle brand Allbirds will proceed with a 1-for-20 reverse stock split to enable its continued listing on the Nasdaq Global Select Market.

The reverse split is intended to bring the company into compliance with the minimum bid price requirement. 

Allbirds expects to begin trading on a post-split basis at the market open on Thursday. Every 20 shares of Allbirds Common Stock issued and outstanding will be combined automatically into one share of Common Stock. 

The company will not issue any fractional shares, and stockholders will receive a cash payment (without interest) instead. All equity awards outstanding immediately prior to the change will also be adjusted.

Launched in 2016 with its roots in New Zealand, Allbirds is known for its iconic Wool Runner shoe. The San Francisco-based company received a warning from Nasdaq in April after its share price fell below the minimum bid price of $1 per share for 30 consecutive days.

In its latest financial report, the brand said second-quarter net loss narrowed to $19.1 million from $28.9 million in the prior-year period. 

CEO Joe Vernachio said the results represent “operational and financial progress” following 18 months of execution against the company’s strategic transformation plan.