Allbirds Announces 1-For-20 Reverse Stock Split
Allbirds (NASDAQ: BIRD) has announced a 1-for-20 reverse stock split of its Class A and Class B Common Stock, effective September 4, 2024. This move aims to bring the company into compliance with Nasdaq's minimum bid price requirement. Trading on a post-split basis will begin on September 5, 2024, under the same symbol (BIRD) but with a new CUSIP number. The split will automatically combine every 20 shares into 1 share, with cash payments issued for fractional shares. Stockholders' ownership percentages will remain unchanged, except for minor adjustments due to fractional share treatment. All outstanding equity awards will be proportionately adjusted. Computershare Inc. is acting as the exchange agent for this process.
Allbirds (NASDAQ: BIRD) ha annunciato un raggruppamento azionario inverso 1-per-20 delle sue azioni ordinarie di classe A e classe B, con effetto dal 4 settembre 2024. Questa mossa ha lo scopo di rendere la società conforme ai requisiti minimi di prezzo di offerta di Nasdaq. Le contrattazioni sulla base post-raggruppamento inizieranno il 5 settembre 2024, sotto lo stesso simbolo (BIRD) ma con un nuovo numero CUSIP. Il raggruppamento unirà automaticamente ogni 20 azioni in 1 azione, con pagamenti in contante emessi per le azioni frazionarie. Le percentuali di possesso degli azionisti rimarranno inalterate, eccetto per piccole variazioni dovute al trattamento delle azioni frazionarie. Tutti i premi azionari in sospeso saranno proporzionalmente adeguati. Computershare Inc. funge da agente di cambio per questo processo.
Allbirds (NASDAQ: BIRD) ha anunciado un split inverso de acciones 1 por 20 de sus acciones comunes de Clase A y Clase B, con efecto a partir del 4 de septiembre de 2024. Este movimiento tiene como objetivo hacer que la compañía cumpla con el requisito de precio mínimo de oferta de Nasdaq. La negociación en base a la nueva acción comenzará el 5 de septiembre de 2024, bajo el mismo símbolo (BIRD) pero con un nuevo número CUSIP. El split combinará automáticamente cada 20 acciones en 1 acción, y se emitirán pagos en efectivo por acciones fraccionarias. Los porcentajes de propiedad de los accionistas permanecerán sin cambios, excepto por pequeños ajustes debido al tratamiento de acciones fraccionarias. Todos los premios de capital pendientes se ajustarán proporcionalmente. Computershare Inc. actúa como agente de cambio para este proceso.
올버드(Allbirds) (NASDAQ: BIRD)는 1대 20 역주식 분할을 클래스 A 및 클래스 B 보통주에 대해 2024년 9월 4일부터 시행한다고 발표했습니다. 이 조치는 나스닥의 최소 입찰 가격 요구 사항을 준수하기 위해 마련되었습니다. 분할 이후 거래는 2024년 9월 5일부터 같은 기호(BIRD)로 시작되지만 새 CUSIP 번호가 부여됩니다. 이번 분할로 인해 20주가 자동으로 1주로 합쳐지며, 분할 주식에 대한 현금 지급이 이뤄집니다. 주주들의 소유 비율은 작은 조정 외에는 변동이 없으며, 모든 미제공 주식 보상도 비례적으로 조정됩니다. 이 과정의 교환 대리인은 Computershare Inc.입니다.
Allbirds (NASDAQ: BIRD) a annoncé un dividende inversé de 1 pour 20 de ses actions ordinaires de classe A et de classe B, prenant effet le 4 septembre 2024. Cette mesure vise à rendre l'entreprise conforme aux exigences de prix minimum d'offre du Nasdaq. Le trading sur une base post-dividende commencera le 5 septembre 2024, sous le même symbole (BIRD) mais avec un nouveau numéro CUSIP. Le dividende combinera automatiquement chaque 20 actions en 1 action, avec des paiements en espèces émis pour les actions fractionnaires. Les pourcentages de propriété des actionnaires resteront inchangés, sauf pour de petits ajustements dus au traitement des actions fractionnaires. Toutes les récompenses en actions non attribuées seront ajustées proportionnellement. Computershare Inc. agit en tant qu'agent d'échange pour ce processus.
Allbirds (NASDAQ: BIRD) hat einen 1-zu-20 Reverse Stock Split seiner Stammaktien der Klassen A und B angekündigt, der am 4. September 2024 wirksam wird. Dieser Schritt zielt darauf ab, das Unternehmen in Übereinstimmung mit den Mindestgebotsanforderungen von Nasdaq zu bringen. Der Handel auf Basis der neuen Aktien beginnt am 5. September 2024 unter demselben Symbol (BIRD), jedoch mit einer neuen CUSIP-Nummer. Der Split wird automatisch jede 20 Aktien in 1 Aktie kombinieren, wobei Barzahlungen für Bruchaktien ausgegeben werden. Die Besitzanteile der Aktionäre bleiben unverändert, mit Ausnahme kleiner Anpassungen aufgrund der Behandlung von Bruchaktien. Alle ausstehenden Eigenkapitalauszeichnungen werden proportional angepasst. Computershare Inc. fungiert als Austauschagent für diesen Prozess.
- Aims to maintain Nasdaq listing compliance
- No change in stockholders' ownership percentages
- Indicates potential share price concerns
- May reduce liquidity for smaller investors
Insights
Allbirds' 1-for-20 reverse stock split is a critical move to maintain its Nasdaq listing. This action typically signals financial distress, as the company struggles to meet the
This reverse split reflects Allbirds' struggle in the competitive sustainable fashion market. Despite its innovative approach, the company has faced challenges in scaling and maintaining profitability. The split might temporarily boost the stock price, but it doesn't solve fundamental issues. Key factors to watch include:
- Post-split investor sentiment and trading volume
- Upcoming financial results and growth metrics
- New product launches or market expansion efforts
The company needs to demonstrate a clear path to profitability and sustainable growth to regain investor confidence post-split.
The reverse stock split is a compliance-driven move to meet Nasdaq's listing requirements. It's important to note that this action was approved by shareholders, demonstrating some level of investor support. The company has taken proper legal steps, including filing a definitive proxy statement with the SEC. The treatment of fractional shares through cash payments is standard practice and helps avoid potential legal issues. However, investors should be aware that reverse splits can sometimes trigger shareholder lawsuits if the stock price doesn't recover post-split. Allbirds must ensure transparent communication about its future plans to mitigate legal risks.
SAN FRANCISCO, Aug. 30, 2024 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials to make better products in a better way, today announced that it will proceed with a 1-for-20 reverse stock split (“Reverse Stock Split”) of its outstanding shares of Class A Common Stock and Class B Common Stock (collectively, the “Common Stock”) following approval by its Board of Directors. The 1-for-20 ratio is within the range approved by stockholders at a special meeting of BIRD stockholders held on August 13, 2024.
The Reverse Stock Split is intended to bring the Company into compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market. The Reverse Stock Split is expected to become effective at 5 p.m. Eastern Daylight Time on September 4, 2024 and the Company’s Class A Common Stock is expected to begin trading on a post-split basis at the market open on September 5, 2024 under the same symbol (BIRD) with the new CUSIP number 01675A208.
When the Reverse Stock Split is effective, every 20 shares of Allbirds Common Stock issued and outstanding will be combined automatically into 1 share of Common Stock. The Reverse Stock Split will apply equally to all outstanding shares of Common Stock, and each stockholder will hold the same percentage of Common Stock outstanding immediately following the Reverse Stock Split, except for adjustments that may result from the treatment of fractional shares. No fractional shares will be issued in connection with the Reverse Stock Split. Instead, holders of Common Stock will receive a cash payment (without interest) in lieu of any fractional shares. Additionally, all equity awards outstanding immediately prior to the Reverse Stock Split will be proportionately adjusted.
Computershare Inc. is acting as the exchange agent and transfer agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. The Company does not have any outstanding certificated shares. Stockholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split and will receive payment for any fractional shares in accordance with their respective bank’s, broker’s, or nominee’s particular processes.
Additional information about the Reverse Stock Split can be found in Allbirds’ definitive proxy statement (Form DEF 14A) filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 28, 2024.
About Allbirds, Inc.
Based in San Francisco, with its roots in New Zealand, Allbirds launched in 2016 with a single shoe: the now iconic Wool Runner. In the years since, Allbirds has sold millions of pairs of shoes, and has maintained its commitment to incredible comfort, versatile style and unmatched quality. This is made possible with materials like Allbirds’s sugarcane-based midsole technology, SweetFoam™, and textiles made with eucalyptus fibers and Merino wool – so consumers don't have to compromise between the best products and their impact on the earth. www.allbirds.com
Contacts:
Investor Relations:
ir@allbirds.com
Media Contact:
press@allbirds.com
FAQ
What is the ratio of Allbirds' reverse stock split?
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Will Allbirds' stock symbol change after the reverse split?
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