SAN DIEGO - Inseego Corp. (NASDAQ:INSG), a company specializing in 5G Enterprise cloud WAN solutions, announced a 1-for-10 reverse stock split of its issued and outstanding common stock, set to take effect after market close on Tuesday. The company's shares will begin trading on a split-adjusted basis on the Nasdaq Global Select Market under the existing ticker symbol "INSG" from Wednesday morning, with a new CUSIP number of 45782B302.
The decision for the reverse stock split follows approval from Inseego's stockholders at the annual meeting on September 5, 2023, where they voted to allow the board of directors to implement a reverse stock split at a ratio between 1-for-5 and 1-for-10. The board subsequently decided on the 1-for-10 ratio.
Upon the reverse stock split's effectiveness, each Inseego common stock share will automatically be reclassified and converted into one-tenth of a share. This action is designed to affect all shareholders uniformly and will not change any stockholder's percentage interest in the company's equity, except for adjustments due to the elimination of fractional shares. Shareholders who would receive a fractional share will be compensated with cash in lieu of the fractional share by the company's transfer agent, Computershare.
The reverse stock split will not alter the par value of the common stock or the authorized number of shares. Additionally, all outstanding convertible notes will be adjusted as required by the terms of those securities.
Inseego is known for its 5G technology solutions, providing cloud networking features and intelligent edge applications for a wide range of customers, including enterprises and small to medium-sized businesses. The company's 5G Edge Cloud aims to connect distributed sites and workforces, secure enterprise data, and enhance business outcomes over a 5G network.
The information presented is based on a press release statement from Inseego Corp.
InvestingPro Insights
In light of Inseego Corp.'s recent announcement regarding a reverse stock split, current and potential investors may find the following InvestingPro Insights particularly informative. According to real-time data from InvestingPro, Inseego's market capitalization stands at a modest 21.07 million USD, reflecting the challenges faced by the company in a highly competitive sector. The company's revenue for the last twelve months as of Q3 2023 was 205.85 million USD, but this represents a concerning decline of 22.41%, with the quarterly figures showing an even steeper drop of 29.76%. This decline in revenue is echoed in the company's gross profit margin, which, while still positive at 26.62%, is overshadowed by an operating income margin of -17.15%, indicating significant operational costs relative to income.
InvestingPro Tips for Inseego highlight several cautionary points for investors. Analysts have revised their earnings expectations downwards for the upcoming period and do not anticipate the company will be profitable this year. In addition, the stock has shown high price volatility and is trading near its 52-week low. Over the last month, the stock has fared poorly, with the price having fallen significantly over the last year and the past three months. These factors, combined with the lack of dividend payments to shareholders, paint a challenging picture for Inseego's short-term outlook.
For those seeking a deeper analysis, InvestingPro+ offers additional tips on Inseego, which can be accessed with a subscription now on a special New Year sale with a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription. The InvestingPro+ service includes a total of 12 additional tips, providing a comprehensive understanding of Inseego's financial health and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.