Qualstar Corporation Announces Plan to Reincorporate in Nevada

Rhea-AI Summary

Qualstar (OTC: QBAK) announced a plan of conversion to reincorporate from California to Nevada and a 3:1 split of its common stock. The plan was approved by the board and by holders of approximately 77.9% of outstanding shares, which meets California law requirements for the reincorporation.

The company will mail a Notice to shareholders on December 12, 2025 describing statutory dissenters' rights and differences between California and Nevada law. The reincorporation is expected to become effective upon filing with the Secretaries of State of California and Nevada on or about January 12, 2026, unless the board elects to abandon the plan.

Positive

• Approved 3:1 stock split for all common shares
• Board and ~77.9% shareholder approval secured
• Expected effective date: on or about January 12, 2026

Negative

• Shareholders may exercise dissenters' rights to receive cash appraisal for their shares
• Board may abandon reincorporation if >1% of outstanding shares duly exercise dissenters' rights

News Market Reaction – QBAK

+8.52%

1 alert

+8.52% News Effect

On the day this news was published, QBAK gained 8.52%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Stock split ratio: 3:1 Approval stake: 77.9% Dissent threshold: 1% +2 more

5 metrics

Stock split ratio 3:1 Planned split of common stock with Nevada reincorporation

Approval stake 77.9% Outstanding shares approving plan of conversion

Dissent threshold 1% If more than 1% exercise dissenters’ rights, board may abandon move

Notice mailing date December 12, 2025 Date company is mailing Notice to shareholders

Expected effective date January 12, 2026 Target date for reincorporation effectiveness upon filings

Market Reality Check

Price: $19.25 Vol: Volume 100 is far below t...

low vol

$19.25 Last Close

Volume Volume 100 is far below the 20-day average of 3,447, indicating very thin trading ahead of this announcement. low

Technical Price $18.20 is trading above the 200-day MA of $8.13, reflecting a pre-existing uptrend.

Peers on Argus

Peers show mixed moves, with EXROF up 12.5%, PWDY down 4.76%, and others flat. N...

Peers show mixed moves, with EXROF up 12.5%, PWDY down 4.76%, and others flat. No clear sector-wide move aligns with QBAK’s action.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Strategic partnership	Positive	-2.1%	Partnership to enhance legacy media migration and AI-driven monetization.
Nov 12	Earnings report	Positive	+13.3%	Q3 2025 revenue growth, return to profitability, and strong cash position.
Sep 15	Leadership change	Positive	+26.2%	Appointment of experienced CTO to support innovation and expansion.
Aug 26	Conference presentation	Positive	+0.3%	Gateway Conference presentation highlighting growth strategy and margins.
Aug 07	Earnings report	Positive	+10.7%	Q2 2025 profitability improvements despite revenue decline and lost customer.

Pattern Detected

Recent news often coincided with positive price reactions, especially around earnings and strategic appointments, while one partnership update saw a mild negative move.

Recent Company History

Over the past six months, Qualstar reported improving profitability in Q2 and Q3 2025, with positive net income and stronger margins, and highlighted cash strength and no debt. Strategic steps included a CTO hire to drive innovation, a conference presentation to showcase growth plans, and a partnership to monetize legacy media. Today’s reincorporation and 3:1 split follow this series of operational and strategic developments.

Market Pulse Summary

The stock moved +8.5% in the session following this news. A strong positive reaction aligns with a s...

Analysis

The stock moved +8.5% in the session following this news. A strong positive reaction aligns with a setup where Qualstar already traded above its 200-day MA of $8.13 and near its 52-week high of $19.75. Investors have recently rewarded strategic and earnings news, as seen after Q2 and Q3 2025 results. However, corporate actions like a 3:1 split and reincorporation carry structural and legal complexities that could later affect sentiment if expectations around governance or liquidity shift.

Key Terms

plan of conversion, dissenters’ rights

2 terms

plan of conversion regulatory

"today announced a plan of conversion under which it will reincorporate"

A plan of conversion is a legal blueprint that lays out how a company or a class of securities will be changed from one form into another — for example converting a business type or swapping one kind of share or note for another — listing the steps, approvals required and what each owner will receive. Investors care because it can change ownership percentages, voting rights, tax treatment and whether shares remain tradable; think of it like a remodeling plan that shows who keeps which rooms and how the house will function afterwards.

dissenters’ rights regulatory

"have the statutory right to dissent from the conversion and receive"

A legal right that lets shareholders who disagree with a major corporate action—like a merger or sale—require the company to buy their shares for cash at a court-determined fair value instead of accepting the transaction. It matters to investors because it offers a safety valve against being forced into a deal they believe undervalues their stake, and it can affect the expected cash outcome and timing of any takeover or reorganization.

AI-generated analysis. Not financial advice.

Plan also includes 3:1 split of Company’s Common Stock

CAMARILLO, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Qualstar Corporation (OTC: QBAK), a trusted provider of scalable data storage and high-efficiency power solutions, today announced a plan of conversion under which it will reincorporate from California to Nevada and its common stock will undergo a 3:1 split.

The plan of conversion has been approved by the Company’s Board of Directors and by the holders of approximately 77.9% of the outstanding shares of the Company’s common stock, which is sufficient to approve the reincorporation under California law. Shareholders of the Company that did not vote in favor of the conversion, and that otherwise comply with certain specified procedures, have the statutory right to dissent from the conversion and receive the appraised fair market value of their shares in cash instead of becoming shareholders of the new Nevada corporation. If holders of more than 1% of the outstanding shares duly exercise their dissenters’ rights, the Board of Directors may elect to abandon the reincorporation.

The Company is mailing a Notice to its shareholders on December 12, 2025 describing the plan of conversion in more detail, summarizing certain material differences between the respective corporations laws of California and Nevada, and describing the dissenters’ rights provisions of California law.

As described in the Notice, unless the Board of Directors elects to abandon the reincorporation, it will become effective upon filing of the required documentation with the Secretaries of State of California and Nevada, which is expected to occur on or about January 12, 2026.

About Qualstar Corporation

Qualstar Corporation, founded in 1984, manufactures and markets data storage system products and compact, high efficiency power solutions.

Our data storage systems are marketed under the Qualstar™ brand and include highly scalable automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in the network computing environment. Our products, sold through resellers, system integrators and OEMs, range from entry-level to enterprise and are a cost-effective solution for organizations requiring backup, recovery and archival storage of critical electronic information.

The Company’s power solutions, marketed under the N2Power™ brand, include standard, semi-custom and custom versions and provide OEM designers with increased functionality while reducing thermal loads and cooling requirements and lowering operating costs. These products are sold to OEMs in a wide range of markets, including telecom/networking equipment, audio/visual, industrial, gaming and medical.

More information is available at www.qualstar.com and www.n2power.com or by phone at 805-583-7744.

Contact Information:

FOR MORE INFORMATION
Qualstar Corporation
Investor Relations
QBAK@Qualstar.com
805-583-7744

FAQ

What change did Qualstar (QBAK) announce on December 11, 2025?

Qualstar announced a plan to reincorporate from California to Nevada and a 3:1 split of its common stock.

When will Qualstar's (QBAK) reincorporation and 3:1 split likely become effective?

The company expects the conversion to become effective upon filing with state secretaries on or about January 12, 2026.

How much shareholder approval did Qualstar (QBAK) obtain for the reincorporation?

The plan was approved by the board and holders of approximately 77.9% of outstanding shares.

What are Qualstar (QBAK) shareholders' dissenters' rights under the plan?

Shareholders who follow specified procedures can dissent and receive the appraised fair market value in cash instead of joining the Nevada corporation.

Could Qualstar (QBAK) abandon the reincorporation after approval?

Yes; the board may elect to abandon the reincorporation if holders of more than 1% of outstanding shares duly exercise dissenters' rights.

When will shareholders receive more details about Qualstar's (QBAK) conversion?

A Notice describing the plan, legal differences, and dissenters' rights will be mailed to shareholders on December 12, 2025.