LOS ANGELES - AERWINS Technologies Inc. (NASDAQ: AWIN), a company engaged in the redesign of a single-seat optionally Manned Air Vehicle (MAV), announced today that it will implement a reverse stock split of its common stock at a 1-for-100 ratio.
The move, set to take effect at the market open on April 2, 2024, aims to elevate the company's per-share price to comply with Nasdaq's minimum bid price requirement for continued listing.
This strategic decision follows approval from the company's stockholders at the Annual Meeting on November 20, 2023, where they authorized the board to determine the specifics of the reverse stock split. As the market opens on April 2, 2024, AERWINS's common stock is expected to trade on the Nasdaq Capital Market on a split-adjusted basis, maintaining the ticker symbol AWIN.
The reverse stock split will consolidate every 100 shares of AERWINS's issued and outstanding common stock into one share, while the par value will remain at $0.000001 per share. Adjustments will also be made to the company's outstanding warrants, options, and restricted stock units, as well as to the shares reserved for issuance under equity incentive plans.
Still, the total number of authorized shares of common stock and preferred stock will remain unchanged at 400,000,000 and 20,000,000, respectively.
Stockholders will not receive fractional shares as a result of the reverse stock split. Instead, any fractional shares will be rounded up to the next whole share. AERWINS's transfer agent, Continental Stock & Trust Company, will act as the exchange agent for the reverse stock split.
Registered stockholders with shares in book-entry form will not need to take action to receive post-reverse stock split shares. Those holding shares through brokerage accounts will have their positions automatically adjusted, in line with each broker’s processes.
Further details about the reverse stock split can be found in AERWINS's definitive proxy statement filed with the Securities and Exchange Commission on October 11, 2023.
This announcement is based on a press release statement from AERWINS Technologies Inc.
InvestingPro Insights
As AERWINS Technologies Inc. (NASDAQ: AWIN) moves forward with its reverse stock split strategy, investors and market watchers are closely analyzing the company's financial health and stock performance. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that could provide a clearer picture of AERWINS's current situation:
InvestingPro Data highlights a challenging financial landscape for AERWINS, with a market capitalization of just 5.45 million USD. The company's revenue for the last twelve months as of Q3 2023 stands at 3.56 million USD, reflecting a significant decline of 11.64%.
This contraction is further emphasized by the quarterly revenue growth for Q3 2023, which plummeted by 82.15%. The gross profit margin during the same period was deeply negative at -33.36%, indicating that the company spends more on producing its goods than it earns from their sale.
In line with these figures, InvestingPro Tips suggest that AERWINS operates with a significant debt burden and may have trouble making interest payments on its debt. This is a crucial point for investors to consider, especially in the context of the reverse stock split, which is often seen as a measure to improve the stock's marketability and compliance with exchange listing requirements.
The company's stock has also taken a considerable hit, with a 1-week price total return of -9.27% and a 1-year price total return of -90.87%, highlighting the volatility and downward trend in its stock price.
For those looking to delve deeper into AERWINS's financials and stock performance, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available for AERWINS, which can be accessed at https://www.investing.com/pro/AWIN. These tips may provide investors with a more comprehensive understanding of the risks and potentials associated with the company's stock.
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