AERWINS Technologies Announces 1-For-100 Reverse Stock Split
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Insights
The announcement of AERWINS Technologies Inc.'s reverse stock split is a strategic move aimed at addressing compliance issues with Nasdaq's minimum bid price requirement. This action is often employed by companies facing delisting due to their stock trading below the $1 threshold. By consolidating shares, the company effectively elevates its stock price, potentially avoiding the negative connotations associated with being removed from a major exchange.
From a financial perspective, the reverse split does not inherently alter the company's market capitalization, as it is merely a cosmetic change. However, it can influence investor perception and may deter some investors due to the perception of financial distress or a lack of organic growth prospects. It's also noteworthy that the total number of authorized shares remains unchanged, which suggests that the company retains the flexibility for future equity issuances.
Reverse stock splits can have mixed implications for market sentiment. On one hand, the increased per-share price may make the stock more attractive to institutional investors and investment funds that have policies against holding stocks below certain price levels. On the other hand, historical data suggests that stocks undergoing reverse splits may underperform in the market over the following year, as the underlying issues that necessitated the split may still persist.
For AERWINS, the critical factor will be how the market interprets this move: as a temporary fix or as part of a broader turnaround strategy. The company's ability to articulate and execute a plan for growth and profitability post-split will be essential for long-term shareholder value creation.
The legal implications of a reverse stock split are straightforward, provided the company has followed due process, including obtaining stockholder approval as mentioned. AERWINS has indicated that proportional adjustments will be made to outstanding warrants, options and restricted stock units, which is a standard procedure to ensure that the interests of holders of these securities are preserved post-split.
Moreover, rounding up fractional shares to the next whole share is a shareholder-friendly move, minimizing the potential for disputes that can arise from the handling of fractional shares. It's important to monitor the company's filings and disclosures following the reverse split to ensure transparency and compliance with securities regulations.
LOS ANGELES, CA, March 28, 2024 (GLOBE NEWSWIRE) -- AERWINS Technologies Inc. (Nasdaq: AWIN) (“AERWINS” or “the Company”) today announced that the Company’s board of directors has resolved to effectuate a reverse stock split of AERWINS’s issued and outstanding common stock, par value
The reverse stock split will become effective at the market open on April 2, 2024, (“Effective Time”) and the Company’s Common Stock is expected to begin trading on a reverse stock split-adjusted basis on the Nasdaq Capital Market (“Nasdaq”) as of the open of trading on April 2, 2024, under the existing ticker symbol, “AWIN.” The reverse stock split is intended to increase the price per share of the Company’s Common Stock to allow the Company to demonstrate compliance with the
As of the Effective Time, every 100 shares of the Company’s issued and outstanding Common Stock will be combined into one issued and outstanding share of Common Stock. The par value per share of our Common Stock will remain unchanged at
The Company’s transfer agent, Continental Stock & Trust Company, will serve as the exchange agent for the reverse stock split. Registered stockholders holding pre-reverse stock split shares of Common Stock electronically in book-entry form are not required to take any action to receive post-reverse stock split shares. Those stockholders who hold their shares in brokerage accounts or in “street name” will have their positions automatically adjusted to reflect the reverse stock split, subject to each broker’s particular processes, and will not be required to take any action in connection with the reverse stock split.
Additional information 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, a copy of which is available at www.sec.gov.
About AERWINS Technologies Inc.
AERWINS Technologies Inc., through its U.S.-based subsidiary, is redesigning a single-seat optionally Manned Air Vehicle (“MAV” or “Manned Air Vehicle”). We aim to align this vehicle with the stringent requirements of the Federal Aviation Administration’s (“FAA”) Powered Ultra-Light Air Vehicle Category, setting a new standard for safe low-altitude manned flight.
For further information, please contact:
Kiran Sidhu
Chief Executive Officer
E: info@aerwins.us
T: +1 (702) 527-1270
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and important factors could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in AERWINS’ filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond AERWINS’ control and could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects AERWINS’ current views concerning future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. AERWINS assumes no obligation to publicly update or revise these forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available. The contents of any website referenced in this press release are not incorporated by reference herein.
FAQ
What is the reverse stock split ratio announced by AERWINS Technologies Inc. (AWIN)?
When will the reverse stock split be effective for AERWINS Technologies Inc. (AWIN)?
What is the purpose of the reverse stock split for AERWINS Technologies Inc. (AWIN)?
Will the total authorized shares of AERWINS Technologies Inc. (AWIN) change as a result of the reverse stock split?
What will happen to fractional shares after the reverse stock split for AERWINS Technologies Inc. (AWIN)?
