Forward Announces 1-For-10 Reverse Stock Split Effective June 18, 2024
Forward Industries (NASDAQ: FORD) announced a 1-for-10 reverse stock split effective June 18, 2024.
Sentiment and the balance of points
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Rhea-AI Summary
Forward Industries (NASDAQ: FORD) announced a 1-for-10 reverse stock split effective June 18, 2024. This move is aimed at complying with Nasdaq's $1.00 minimum bid price requirement. Shareholders approved the split on June 10, 2024, and the company's board selected the 1-for-10 ratio. The stock will begin trading on a split-adjusted basis on June 18, 2024, with a new CUSIP number 349862 409. The reverse split will consolidate every ten shares into one while maintaining the overall shareholder equity percentage except for rounding adjustments. No fractional shares will be issued; they will be rounded up to the nearest whole share. The transfer agent, Equiniti Stock Transfer, will manage the exchange process.
Positive
- The reverse stock split aims to meet Nasdaq's $1.00 minimum bid price requirement, potentially preventing delisting.
- Shareholders approved the proposal, showing investor support with no immediate impact on individual equity percentages apart from share rounding.
- The new CUSIP number and adjusted trading basis may draw attention from new investors and analysts.
Negative
- There is no guarantee that the company will maintain the $1.00 minimum bid price long-term, risking future Nasdaq compliance issues.
- The reverse stock split could be perceived as a signal of underlying financial instability or low stock performance.
- Investors might be wary of the consolidation leading to reduced liquidity and higher volatility in stock trading.
Details
News Market Reaction – FORD
The recorded move for FORD in the trading session of this news was +1.49%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HAUPPAUGE, N.Y., June 14, 2024 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ: FORD) (“Forward” or the “Company”), a global design, sourcing, and distribution company serving top tier medical and technology customers, announced today that it will effect a 1-for-10 reverse stock split (“Reverse Stock Split”) of its common stock, par value
At the Company’s special meeting of Shareholders held on June 10, 2024, the Company’s shareholders approved a proposal to authorize a reverse stock split of the Company’s Common Stock at a ratio within the range of 1-for-3 to 1-for-10. The Company’s board of directors approved a 1-for-10 reverse split ratio, and the Company will file a Certificate of Amendment to its Restated Certificate of Incorporation to effect the Reverse Stock Split effective June 18, 2024.
The Reverse Stock Split is primarily intended to bring the Company into compliance with the
The 1-for-10 reverse stock split will automatically combine and convert ten current shares of the Company’s Common Stock into one issued and outstanding share of Common Stock. Proportional adjustments may be made to outstanding equity awards, warrants and convertible notes, and certain existing agreements pursuant to their terms. The Reverse Stock Split will not change the par value of the Common Stock nor the authorized number of shares of Common Stock, preferred stock, or any series of preferred stock.
No fractional shares will be issued in connection with the Reverse Stock Split. All fractional shares will be rounded up to the nearest whole share. The Reverse Stock Split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity (other than as a result of the rounding of shares to the nearest whole share in lieu of issuing fractional shares).
The Company’s transfer agent, Equiniti Stock Transfer, will serve as exchange agent for the Reverse Stock Split. Registered stockholders holding pre-split shares of the Company’s Common Stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, trust, or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such broker’s particular processes, and will not be required to take any action in connect with the Reverse Stock Split.
About: Forward (NASDAQ: FORD) is a New York-based global design, sourcing and distribution company serving top tier medical and technology customers worldwide.
For more information, contact:
Kathleen Weisberg, CFO, Forward Industries, Inc.
(631) 547-3055, kweisberg@forwardindustries.com
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