Society Pass Incorporated Announces 1-for-15 Reverse Split
Society Pass Inc. (Nasdaq: SOPA) announced a 1-for-15 reverse stock split to regain compliance with Nasdaq rules, effective May 1, 2024. Shareholders will see a consolidation of shares with no change in ownership percentage.
- None.
- None.
The decision to implement a 1-for-15 reverse stock split by Society Pass signifies an attempt to address compliance issues with Nasdaq's minimum bid price requirement. By consolidating shares, SOPA aims to boost its share price above the Nasdaq's minimum threshold, which is pivotal for companies wishing to avoid delisting. This is a strategic move that investors should monitor closely as it can lead to increased investor confidence if successful, or further dilution if additional capital raises are needed in the future.
Historically, reverse splits have been met with mixed reactions from the market. While it could help SOPA in meeting immediate listing requirements, the action may sometimes be interpreted by investors as a sign of distress within a company. It's essential to observe post-split price movements and trading volumes, as these will indicate broader market sentiment towards the stock's value and the company's prospects.
From a market perspective, the reduction in authorized shares in line with the reverse split ratio indicates a tightening of available equity. This could potentially create a perception of scarcity, influencing demand. It is vital for investors to consider the company's market position in Southeast Asia's e-commerce ecosystem, which is characterized by high competition and rapid growth.
Understanding the marketplace dynamics and the company's operational efficiency in such an environment is important in assessing the potential long-term benefits of the reverse split. Considering the company's performance in comparison to its peers will offer insight into its strategic positioning post-split.
NEW YORK, April 26, 2024 (GLOBE NEWSWIRE) -- Society Pass Inc. (Nasdaq: SOPA) (“SOPA” or the “Company”), Southeast Asia’s (SEA) next generation, e-commerce ecosystem, today announced that the board approved a proposed 1-for-15 shares reverse split of its common stock (the "Reverse Split").
Beginning with the opening of trading on May 1, 2024, the Company's common stock will begin trading on a post-Reverse Split basis on the Nasdaq Capital Market under the same symbol "SOPA", but under a new CUSIP number of 83370P201. The objective of the Reverse Split is to enable the Company to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintain its listing on the Nasdaq Capital Market.
Upon the effectiveness of the Reverse Split, every fifteen issued and outstanding shares of common stock with a par value of US
About Society Pass Inc.
Founded in 2018 as an e-commerce ecosystem in the fast growing markets of Vietnam, Indonesia, Philippines, Singapore and Thailand, which account for more than
Cautionary Note Concerning Forward-Looking Statements
This press release may include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend” and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus relating to the Company’s initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Media Contact:
Rokas Sidlauskas
Chief Marketing Officer
rokas@thesocietypass.com
FAQ
What did Society Pass Inc. announce?
When will the reverse split be effective?
Why is the reverse split being implemented?
How will the reverse split impact shareholders?
Will fractional shares be issued as a result of the reverse split?
Who approved the reverse split?
What filing was made regarding the reverse split?
