Shares of Decent Holding Inc. experienced a dramatic surge in after-hours trading on Wednesday, February 11, 2026, climbing approximately 80% to reach $0.31 per share. Trading volume was exceptionally heavy, exceeding 307 million shares. The session was marked by significant volatility, with the stock price oscillating between a low of $0.17 and a high of $0.48 during the day.
Reverse Stock Split Proposal
The substantial price movement coincides with a critical corporate event. The company is preparing for a shareholder vote on a proposed reverse stock split. In a recent proxy filing, Decent Holding has asked investors to authorize a board-determined consolidation ratio within a wide range of 5-to-1 up to 50-to-1. The stated objective of this maneuver is to elevate the per-share trading price. The company has explicitly noted that this action is necessary to maintain compliance with Nasdaq listing standards, which include minimum bid price requirements. Decent has cautioned shareholders that there is no guarantee it will be able to continue meeting these exchange mandates, as its shares have persistently traded below the $1 threshold.
Lock-Up Expirations Add to Trading Dynamics
Adding to the trading fervor was the expiration of lock-up agreements on a substantial block of shares this week. Data indicates that 11.25 million Class A shares were restricted from sale from November 12, 2025, through February 10, 2026. These lock-ups typically apply to company insiders and early investors following a public offering. Furthermore, an additional 5 million Class B shares saw their lock-up period conclude on February 10. While such expirations can increase the potential supply of shares on the market, it remains uncertain whether the holders will immediately divest their positions.
These restrictions originated from a registered direct offering finalized in November 2025. In that transaction, the company sold 13.33 million Class A shares at a price of $0.60 each. The offering also included warrants that could lead to the issuance of up to 26.67 million more shares. The exercise of these warrants represents a potential source of future dilution for existing shareholders.
Auditor Change and Business Overview
In a separate corporate development, Decent Holding disclosed in a February 2026 filing a change in its independent auditor. The company dismissed WWC, P.C. and engaged YCM CPA Inc. as its new independent registered public accounting firm, effective December 15, 2025. The company stated that WWC's audit reports for the fiscal years 2023 and 2024 did not contain an adverse opinion or a disclaimer of opinion.
Decent Holding is incorporated in the Cayman Islands and conducts its primary operations in China through a subsidiary. The company's business focuses on environmental solutions, specifically industrial wastewater treatment, ecological river restoration, and the production of microbial products designed to enhance water quality.
Market Context and Forward Outlook
Stocks trading at low price levels, such as Decent Holding, are often susceptible to pronounced technical swings, especially when corporate actions like reverse splits are pending. While a consolidation increases the nominal share price, it does not alter the company's fundamental market capitalization or intrinsic value. A potential side effect is a reduction in market liquidity, as the number of shares outstanding decreases.
Market participants will be closely monitoring the stock's performance in Thursday's session to see if the heightened trading activity persists. Investors are also anticipating further regulatory filings ahead of the scheduled shareholder meeting on February 23, 2026, where the final details and potential implementation timeline for the reverse stock split will be decided.