What are the primary reasons the company is pursuing a reverse split—e.g., low share price, marketability, compliance with listing requirements?

Why Foresight is moving to a 1‑for‑7 reverse split

Foresight’s announcement of a 1‑for‑7 reverse share‑split signals a classic “price‑re‑leveling” move. The company’s ordinary‑share price has drifted well below the $1‑$5 range that most market participants and the Nasdaq Capital Market view as a “reasonable” trading level. A low per‑share price can impair marketability (few institutional investors and algorithmic traders will engage with penny‑style equities), increase transaction costs for retail traders, and raise the risk of falling below Nasdaq’s $1 minimum price requirement for continued listing. By consolidating every seven shares into one, Foresight will raise the post‑split price roughly seven‑fold, bringing the share into a more “tradable” bracket, improving liquidity, and helping the firm stay in compliance with Nasdaq’s continued listing standards (minimum price, market‑value of listed securities and shareholder equity thresholds).

Trading implications

• Short‑term – Expect a modest, temporary price bump as the split is priced in; the market may overshoot the adjusted price due to the “new‑price” perception. Watch the opening on TASE (Aug 24) and Nasdaq (Aug 25) for any volatility spikes; a tight range is typical as market makers adjust the new share count.
  
• Mid‑term – If the split succeeds in elevating the share price above the $1 threshold, the stock becomes eligible for a broader pool of institutional buyers and may see tighter spreads and higher volume. However, the fundamental driver remains Foresight’s underlying business—3D perception technology—and the split does not change fundamentals. Traders should therefore focus on the company’s revenue pipeline, cash runway, and upcoming product milestones rather than relying on the split alone.
  

Actionable insight: If you hold FRSX, consider consolidating your position before the split to avoid fractional‑share complications and to lock in the adjusted cost basis. For new entrants, wait for the post‑split price to settle (typically 2–5 days) before taking a position, and confirm that the stock remains above the Nasdaq minimum; a breach would trigger a delisting risk that could generate a sharp downside. If the company maintains its growth trajectory, the higher share price may attract institutional demand, providing a potential upside catalyst after the initial price‑adjustment noise subsides.