Crown Announces Effective Date of Reverse Stock Split
Crown Electrokinetics (NASDAQ: CRKN) announced a 1-for-150 reverse stock split effective January 30, 2025. The company will continue trading on Nasdaq under the same ticker symbol with a new CUSIP number 228339 503. The split was approved by the Board on January 25 and by stockholders on January 14, 2025.
Every 150 shares will automatically convert to one share, with fractional shares rounded up to the nearest whole share. The split aims to maintain Nasdaq listing requirements. CEO Doug Croxall highlighted the company's strong position with over $25 million cash balance and growing revenues. He also emphasized the recent addition of Andy Mayer and his team, focusing on pipeline industry expertise and disaster rehabilitation, particularly for California's wildfire recovery efforts.
Crown Electrokinetics (NASDAQ: CRKN) ha annunciato un frazionamento inverso delle azioni di 1 per 150 che entrerà in vigore il 30 gennaio 2025. La società continuerà a essere quotata su Nasdaq con lo stesso simbolo azionario e un nuovo numero CUSIP 228339 503. Il frazionamento è stato approvato dal Consiglio il 25 gennaio e dagli azionisti il 14 gennaio 2025.
Ogni 150 azioni si convertiranno automaticamente in una sola azione, con le azioni frazionarie arrotondate all'azione intera più vicina. L'obiettivo del frazionamento è di mantenere i requisiti di quotazione di Nasdaq. Il CEO Doug Croxall ha sottolineato la forte posizione della società con oltre $25 milioni di saldo di cassa e ricavi in crescita. Ha anche evidenziato l'aggiunta recente di Andy Mayer e del suo team, concentrandosi su esperienze nel settore delle pipeline e riabilitazione dopo disastri, in particolare per gli sforzi di recupero dagli incendi in California.
Crown Electrokinetics (NASDAQ: CRKN) anunció una división de acciones inversa de 1 por 150 que entrará en vigor el 30 de enero de 2025. La compañía seguirá cotizando en Nasdaq bajo el mismo símbolo de cotización con un nuevo número CUSIP 228339 503. La división fue aprobada por la Junta el 25 de enero y por los accionistas el 14 de enero de 2025.
Cada 150 acciones se convertirán automáticamente en una acción, con las acciones fraccionarias redondeadas a la acción entera más cercana. La división tiene como objetivo mantener los requisitos de cotización de Nasdaq. El CEO Doug Croxall destacó la sólida posición de la compañía con más de $25 millones de saldo de efectivo y unos ingresos en crecimiento. También enfatizó la reciente incorporación de Andy Mayer y su equipo, centrados en la experiencia en la industria de tuberías y la rehabilitación tras desastres, particularmente para los esfuerzos de recuperación de incendios en California.
Crown Electrokinetics (NASDAQ: CRKN)는 2025년 1월 30일부터 시행되는 1대 150의 역주식을 발표했습니다. 회사는 동일한 주식 기호로 Nasdaq에서 계속 거래되며 새로운 CUSIP 번호 228339 503이 부여됩니다. 이 주식 분할은 2025년 1월 25일 이사회에서, 1월 14일 주주들에 의해 승인되었습니다.
150주의 주식은 자동으로 1주로 변환되며, 분수 주식은 가장 가까운 정수 주식으로 반올림됩니다. 이 분할은 Nasdaq 상장 요건을 유지하기 위한 목적입니다. CEO Doug Croxall은 $25백만의 현금 잔고 및 증가하는 수익과 함께 회사의 강력한 입지를 강조했습니다. 또한 그는 California의 산불 복구 노력을 특히 주목하여 파이프라인 산업 전문성과 재해 복구에 집중하는 Andy Mayer와 그의 팀의 최근 합류에 대해서도 강조했습니다.
Crown Electrokinetics (NASDAQ: CRKN) a annoncé une division inversée des actions de 1 pour 150 qui prendra effet le 30 janvier 2025. La société continuera de négocier sur le Nasdaq sous le même symbole boursier avec un nouveau numéro CUSIP 228339 503. La division a été approuvée par le Conseil le 25 janvier et par les actionnaires le 14 janvier 2025.
Chaque 150 actions seront automatiquement converties en une action, les actions fractionnaires étant arrondies à l'action entière la plus proche. L'objectif de cette division est de maintenir les exigences d'inscription sur le Nasdaq. Le PDG Doug Croxall a souligné la position solide de l'entreprise avec un solde de trésorerie de plus de 25 millions de dollars et des revenus en croissance. Il a également mis en avant l'ajout récent d'Andy Mayer et de son équipe, se concentrant sur l'expertise de l'industrie des pipelines et la réhabilitation après des désastres, en particulier pour les efforts de récupération des incendies en Californie.
Crown Electrokinetics (NASDAQ: CRKN) gab eine rückläufige Aktienaufteilung im Verhältnis 1 zu 150 bekannt, die am 30. Januar 2025 wirksam wird. Das Unternehmen wird weiterhin unter demselben Tickersymbol an der Nasdaq gehandelt, jedoch mit einer neuen CUSIP-Nummer 228339 503. Die Teilung wurde am 25. Januar vom Vorstand und am 14. Januar 2025 von den Aktionären genehmigt.
Jede 150 Aktien wird automatisch in eine Aktie umgewandelt, wobei Bruchaktien auf die nächstgelegene volle Aktie aufgerundet werden. Das Ziel der Teilung ist es, die Anforderungen für die Nasdaq-Listung aufrechtzuerhalten. CEO Doug Croxall hob die starke Position des Unternehmens mit einem Barbestand von über 25 Millionen US-Dollar und wachsenden Einnahmen hervor. Er betonte auch die kürzliche Aufnahme von Andy Mayer und seinem Team, die sich auf Fachkenntnisse in der Pipeline-Industrie und Katastrophenrehabilitation konzentrieren, insbesondere in Bezug auf Wiederherstellungsbemühungen nach Waldbränden in Kalifornien.
- Cash balance exceeding $25 million
- Growing revenues reported
- Strategic addition of pipeline industry expertise team
- Implementation of 1-for-150 reverse stock split indicates share price concerns
- Reverse split necessary to maintain Nasdaq listing requirements suggests compliance issues
Insights
The announced 1-for-150 reverse stock split represents an unusually aggressive ratio that warrants careful scrutiny. With a current market cap of just
While management highlights a cash position exceeding $25 million, this raises questions about the company's valuation dynamics, as their cash holdings reportedly exceed their entire market capitalization. This discrepancy suggests either significant ongoing operational losses or market skepticism about the company's business model and execution capabilities.
Historical market data shows that aggressive reverse splits often signal fundamental business challenges and frequently lead to continued share price deterioration post-split. Key risk factors include:
- Potential increased volatility due to reduced float and trading volume
- Risk of continued price decline post-split based on historical patterns
- Market perception challenges, as reverse splits are often viewed negatively by investors
The strategic addition of Andy Mayer and focus on infrastructure solutions, particularly in disaster rehabilitation, represents a potential pivot in business direction. However, investors should note that such transformational attempts following reverse splits have historically had mixed success rates. The company's ability to execute on these opportunities while managing cash burn will be important for long-term viability.
LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”), a leading provider of innovative technology infrastructure solutions that benefit communities and the environment, today announced its plan to implement a reverse split of its common stock at a ratio of 1-for-150 shares. The reverse stock split will be effective for marketplace purposes with the open of business on Thursday, January 30, 2025. Following the reverse stock split, Crown’s common stock will continue to trade on The Nasdaq Capital Market under the ticker symbol “CRKN.” The new CUSIP number for the common stock following the reverse stock split will be 228339 503, reflecting the adjusted share structure.
The Company's Board of Directors approved the reverse stock split at a ratio of 1-for-150 shares on January 25, 2025, following approval for the action by Crown's stockholders at a special stockholders meeting on January 14, 2025.
Upon effectiveness of the reverse stock split, every 150 shares of the Company's issued and outstanding common stock will be automatically converted into one share of issued and outstanding common stock. Fractional shares resulting from the reverse stock split will not be issued; instead, fractional shares will be rounded up to the nearest whole share. The reverse stock split will apply uniformly to all stockholders and will not alter any stockholder's proportional ownership in the Company, except for the adjustments related to fractional shares.
“Completing this reverse stock split is a key step in strengthening Crown and positioning the company for long-term success,” said Doug Croxall, CEO and Chairman, Crown. “By consolidating our shares, we are taking a necessary step to maintain our Nasdaq listing, which is critical for our growth and credibility. Crown today is in a much stronger position compared to the past, with a healthy cash balance exceeding
“Our recent addition of Andy Mayer and his highly skilled team marks a transformative moment for Crown. Andy’s unparalleled expertise in the pipeline industry, coupled with his extensive experience in disaster rehabilitation, significantly strengthens our solutions offering and positions us to secure important agreements. As a long-time Los Angeles resident, I am especially proud of Crown’s potential to play a critical role in California’s recovery and rebuilding efforts following the devastating wildfires. We are confident that our expanded capabilities will open new doors, accelerate our growth, and solidify Crown’s place as a leader in delivering innovative infrastructure solutions,” concluded Mr. Croxall.
For more information regarding the reverse stock split, please refer to the Company’s filings with the Securities and Exchange Commission ("SEC") at https://ir.crownek.com/sec-filings.
About Crown
Crown (Nasdaq: CRKN) is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Construction, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit www.crownek.com.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown’s future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” . Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
For more information, please contact:
Investor Relations
ir@crownek.com
Public Relations
pr@crownek.com
FAQ
What is the ratio of Crown Electrokinetics (CRKN) reverse stock split announced for January 30, 2025?
How will CRKN handle fractional shares after the January 2025 reverse split?
What is Crown Electrokinetics' (CRKN) current cash balance as of January 2025?
When did shareholders approve CRKN's reverse stock split?
What is the new CUSIP number for CRKN after the reverse split?
