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WiSA Technologies Announces Reverse Stock Split

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WiSA Technologies, Inc. (WISA) announces a 1-for-150 reverse stock split of its common stock, effective April 15, 2024, trading on Nasdaq Capital Market. Stockholders to receive instructions from VStock Transfer, for stock certificate exchange.
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The announcement of WiSA Technologies' 1-for-150 reverse stock split is a significant structural change that warrants attention from a financial perspective. Such a corporate action typically aims to boost the stock's market price, often to meet listing requirements or to attract a different investor base. A reverse stock split reduces the number of shares outstanding, increasing the price per share proportionally, without changing the company's market capitalization.

For investors, this move can have mixed implications. On one hand, it could be perceived as a measure to maintain compliance with Nasdaq's minimum bid price requirement, which might reflect underlying financial challenges. On the other hand, a higher share price could make the stock less volatile and more appealing to institutional investors who may avoid lower-priced stocks. It's important to monitor the stock's performance post-split to assess the market's reception of this action.

From a market research perspective, the reverse stock split by WiSA Technologies may signal a strategic pivot in the company's approach to market positioning. The wireless audio technology sector is competitive and maintaining a strong market presence is essential for attracting partnerships and investment. The reverse split could be interpreted as an effort to present the company as a more stable investment opportunity, potentially leading to increased interest from analysts and investors who prioritize stock price stability and quality over mere affordability.

However, this action alone does not alter the fundamental value of the company or its technology's market potential. It will be important to evaluate subsequent financial reports and market performance to understand whether this structural change aligns with an improvement in the company's financial health and growth trajectory.

Legally, the reverse stock split is a straightforward process that involves amending the company's certificate of incorporation and requires board approval, as well as compliance with state and federal securities laws. The new CUSIP number indicates a new identifier for the stock, which is a standard procedure following such a corporate action. Shareholders should be aware that while the mechanics of the reverse split are handled by the company's transfer agent and no action is typically required on their part, the impact on the value of their investment is subject to market forces.

It's also important to note that reverse stock splits can sometimes lead to temporary confusion and fluctuations in the market as investors adjust to the new price levels. The legal team's execution in communicating and implementing this change is critical to ensure a smooth transition for shareholders and to maintain compliance with regulatory standards.

BEAVERTON, Ore.--(BUSINESS WIRE)-- WiSA Technologies, Inc. (Nasdaq: WISA, the “Company,” “we," "us” or “our") a leading innovator in wireless audio technology for intelligent devices and next-generation home entertainment systems, today announced that on April 4, 2024, the Company’s Board of Directors approved a 1-for-150 reverse split (the "Reverse Stock Split") of the Company’s common stock (the "Common Stock"). On April 12, 2024, the Company plans to file a certificate of amendment to the Company’s certificate of incorporation, as amended, with the Secretary of State of the State of Delaware to effect the Reverse Stock Split as of 5:00 p.m. Eastern Time on that date. On April 15, 2024 the Common Stock will begin trading on the Nasdaq Capital Market (“Nasdaq”) on a split-adjusted basis at the start of trading on April 15, 2024 and will have a new CUSIP number of 86633R609.

Information to Stockholders

VStock Transfer, LLC, the Company transfer agent, will send instructions to stockholders of record who hold stock certificates regarding the exchange of certificates for Common Stock. Stockholders who hold their shares of Common Stock in book-entry form or in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares of Common Stock following the Reverse Stock Split. VStock Transfer, LLC may be reached for questions at (212) 828-8436.

About WiSA Technologies, Inc.

WiSA Technologies, Inc. (NASDAQ: WISA) is a leading provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. Working with leading CE brands and manufacturers such as Harman International, a division of Samsung; LG; Hisense; TCL; Bang & Olufsen; Platin Audio; and others, the company delivers immersive wireless sound experiences for high-definition content, including movies and video, music, sports, gaming/esports, and more. WiSA Technologies, Inc. is a founding member of WiSA™ (the Wireless Speaker and Audio Association) whose mission is to define wireless audio interoperability standards as well as work with leading consumer electronics companies, technology providers, retailers, and ecosystem partners to evangelize and market spatial audio technologies driven by WiSA Technologies, Inc. The company is headquartered in Beaverton, OR with sales teams in Taiwan, China, Japan, Korea, and California.

Safe Harbor Statement

This press release contains forward-looking statements, which are not historical facts, 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. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements, including statements herein on the effective date of the Reverse Stock Split and the date that trading of the Common Stock will begin on a split-adjusted basis, are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties including, but not limited to, our ability to maintain the listing of our Common Stock on Nasdaq; our current liquidity position and the need to obtain additional financing to support ongoing operations; our ability to continue as a going concern; general market, economic and other conditions; our ability to manage costs and execute on our operational and budget plans; our ability to achieve our financial goals; and other risks as more fully described in our filings with the Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law.

David Barnard, LHA Investor Relations, (415) 433-3777, wisa@lhai.com

Source: WiSA Technologies, Inc.

FAQ

When did WiSA Technologies, Inc. announce the reverse stock split?

WiSA Technologies, Inc. announced the 1-for-150 reverse stock split on April 4, 2024.

When will the reverse stock split be effective?

The reverse stock split will be effective as of 5:00 p.m. Eastern Time on April 15, 2024.

Where will the Common Stock of WiSA Technologies, Inc. trade after the split?

The Common Stock will begin trading on the Nasdaq Capital Market on a split-adjusted basis starting April 15, 2024.

How can stockholders exchange their stock certificates following the reverse stock split?

Stockholders of record holding stock certificates will receive instructions from VStock Transfer, Those holding shares in book-entry form or brokerage accounts do not need to take any action for the exchange.

What is the new CUSIP number for WiSA Technologies, Inc. Common Stock after the reverse stock split?

The new CUSIP number for the Common Stock will be 86633R609.

WiSA Technologies, Inc.

NASDAQ:WISA

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Semiconductor and Related Device Manufacturing
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About WISA

summit semiconductor, llc. is a successful fabless semiconductor company developing wireless audio integrated circuits for home entertainment and pro-audio markets. its award-winning summit wireless™ technology is the leading integrated circuit solution enabling audio systems to distribute high-definition, distortion-free audio with ease. summit wireless transmit technology is designed to be integrated into audio decode sources such as digital televisions, sound bars, pa systems, av receivers, blu-ray players, set-top boxes, and gaming systems that transmit multi-channel audio to home theater or pro-audio speakers with summit receive technology integrated. summit semiconductor is headquartered beaverton, or, usa, with offices in san jose, ca, taiwan, korea and japan co-founder of the wireless speaker and audio association "wisa" standard for interoperability.