ATLANTA - Trust Stamp (NASDAQ:IDAI), a provider of AI-powered identity verification services with a market capitalization of $15.81 million, has announced a reverse stock split effective for trading on January 6, 2025. This decision follows a series of actions aimed at ensuring compliance with Nasdaq's minimum bid price requirement. According to InvestingPro data, the stock has shown high price volatility, with shares currently trading at $0.57.
The reverse split process began on September 20, 2024, with a notification to Nasdaq. In response, Nasdaq granted the company an extension on November 4, 2024, to meet the $1 closing bid rule. A significant majority of shareholders, 96%, voted in favor of the reverse split during an Extraordinary General Meeting (EGM) held on November 18, 2024.
Despite a brief price surge that saw shares close at $1.20 on December 30, 2024, the stock's momentum stalled, and prices fell in subsequent days. The stock has declined 22.67% year-to-date, though InvestingPro data shows a 53.26% gain over the past six months. CEO Gareth N. Genner noted that while the company has experienced several price spikes, they have not been sustained long enough to meet Nasdaq's requirement of ten consecutive trading days with a closing bid above $1.
The announcement of the reverse split on January 2, 2025, was made against the backdrop of this volatility, with the board of directors aiming to position the stock price above the penny stock classification. Genner expressed his belief that the reverse split aligns with the long-term interests of shareholders and may attract a broader range of investors, including family offices and investment institutions.
Trust Stamp is preparing for its Annual General Meeting (AGM) on January 29, 2025, where it will release updates on the company's positioning for the year and detail partnerships and initiatives. The company sees significant opportunities as it addresses challenges in the global market related to quantum computing, deepfakes, cybersecurity breaches, ransomware attacks, and national security.
Based on a press release statement, Trust Stamp, self-described as the Privacy-First Identity Company™, operates across sectors such as banking, finance, and government, with a presence in North America, Europe, Asia, and Africa. Financial metrics from InvestingPro indicate challenging conditions, with revenue declining 51.92% in the last twelve months and a current ratio of 0.6. InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics for Trust Stamp.
In other recent news, Trust Stamp and T Stamp Inc. have announced key developments. T Stamp Inc. stockholders approved proposals for a reverse stock split, issuance of new shares and warrants, and the sale of approximately 4.6 million shares of Class A Common Stock to DQI Holdings, Inc. Trust Stamp declared a 1-for-15 reverse stock split of its common stock, aiming to comply with Nasdaq's minimum bid price requirement.
T Stamp Inc. experienced significant changes in its leadership, with the appointment of Andrew Scott Francis, the current Chief Technology Officer, to the Board of Directors, and the announced departures of CFO Alexander Valdes and Executive Vice President of Mergers and Acquisitions Joshua Allen. Trust Stamp's CEO, Gareth N. Genner, hinted at forthcoming announcements detailing new strategic partnerships, sources of income, and reduced expenses.
T Stamp Inc. regained compliance with Nasdaq's equity requirement through strategic transactions, including the issuance of shares to convert debt into equity, a licensing agreement with Boumarang Inc., and the sale and exercise of warrants with institutional investors. Trust Stamp, meanwhile, faces financial challenges, with short-term obligations exceeding liquid assets.
T Stamp Inc. was granted a patent for personal identifiable information encoding technology by the US Patent and Trademark Office and formed a strategic alliance with Qenta Inc. to advance its digital identity technology. Trust Stamp reported revenue of $2.16 million in the last twelve months, with a gross profit margin of 51.35%. These are the recent developments shaping both companies.
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