EzFill Holdings, Inc. Announces Reverse Stock Split

Rhea-AI Summary

EzFill Holdings, Inc. (NASDAQ: EZFL), a leader in the mobile fuel industry, has announced a 1 for 2.5 reverse stock split effective July 25, 2024. This strategic move aims to regain compliance with Nasdaq's continued listing requirement of maintaining at least $2,500,000 in stockholders' equity. The split will reduce outstanding common stock from approximately 4.97 million to 1.99 million shares, with fractional shares rounded up.

Interim CEO Yehuda Levy emphasized the importance of maintaining Nasdaq listing for enhancing shareholder value, citing the visibility and credibility it provides. This reverse split is a important step in EzFill's efforts to strengthen its market position and financial standing.

Positive

• Potential to regain compliance with Nasdaq listing requirements
• Reduction in outstanding shares may lead to increased stock price

Negative

• Reverse stock split may be perceived as a sign of financial distress
• No change in company's market capitalization or underlying value

Insights

Financial Analyst

EzFill Holdings, Inc.'s announcement of a 1-for-2.5 reverse stock split is a notable move to comply with Nasdaq's listing requirements. This action will significantly reduce the number of shares outstanding, from approximately 4.97 million to 1.99 million, effectively increasing the stock price to help meet the $2,500,000 stockholders' equity requirement.

Reverse stock splits are typically implemented by companies to avoid delisting and can often be perceived as a sign of financial trouble, as they artificially inflate the stock price without changing the company’s market capitalization. However, it can also be seen positively by investors as it demonstrates the company’s commitment to maintaining its Nasdaq listing, which is important for liquidity and investor confidence.

Investors should understand the implications: while the number of shares they hold will decrease, their overall value remains the same. The key impact will be on the stock price per share, which should theoretically rise proportionately. Investors should also watch for any changes in trading volume and market perception post-split.

Market Research Analyst

This reverse stock split by EzFill can have varied market reactions. Historically, such moves are mixed bags in terms of market sentiment. On the one hand, maintaining Nasdaq listing keeps the stock accessible to institutional investors and funds, which can be a positive sign. On the other, reverse splits sometimes signal underlying financial challenges.

In the short term, the market may react with volatility as investors reassess the company’s viability and prospects. In the long term, the split will only be beneficial if the company can leverage its Nasdaq listing to achieve stronger business performance and financial stability.

For retail investors, it's essential to keep an eye on how the market digests this change over the next few trading sessions and be wary of any abrupt price movements. Additionally, understanding how EzFill plans to improve its financial health post-split will be critical in assessing the viability of holding or acquiring the stock.

MIAMI, FL, July 23, 2024 (GLOBE NEWSWIRE) -- EzFill Holdings, Inc. (“EzFill” or the “Company”) (NASDAQ: EZFL), a pioneer and emerging leader in the mobile fuel industry, announced that, it will effect a 1 for 2.5 reverse stock split of its common stock. EzFill expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading on July 25, 2024.

The reverse stock split was approved by the Board of Directors and shareholders of the Company and is being implemented as part of a plan by the Company to regain compliance with the continued listing requirement under Nasdaq Listing Rule 5550(b)(1), which requires that a listed company’s stockholders’ equity be at least $2,500,000.

At the effective time of the reverse stock split, every 2.5 shares of EzFill common stock issued and outstanding will be combined into one share of common stock issued and outstanding. This will reduce the Company’s outstanding common stock from approximately 4.97 million shares to approximately 1.99 million shares. No fractional shares of common stock will be issued as a result of the reverse stock split and instead fractional shares will be rounded up.

Yehuda Levy, EzFill’s Interim Chief Executive Officer, commented, “The reverse split is a necessary step in our efforts to maintain our listing on the Nasdaq market. The visibility and credibility that comes with a Nasdaq listing is an important component in our efforts to enhance shareholder value.”

About EzFill

EzFill is a leader in the fast-growing mobile fuel industry, with the largest market share in its home state of Florida. Its mission is to disrupt the gas station fueling model by providing consumers and businesses with the convenience, safety, and touch-free benefits of on-demand fueling services brought directly to their locations. For commercial and specialty customers, at-site delivery during downtimes enables operators to begin their daily operations with fully fueled vehicles. For more information, visit www.ezfl.com.

With the number of gas stations in the U.S. continuing to decline, corporate giants such as Shell, Exxon, GM, Bridgestone, Enterprise, and Mitsubishi have recognized the increasing shift in consumer behavior and are investing in the fast growing on-demand mobile fueling industry, in companies such as Booster and Yoshi. As the only company to provide fuel delivery in three verticals – consumer, commercial, and specialty including marine and construction equipment, we believe EzFill is well positioned to capitalize on the growing demand for convenient and cost-efficient mobile fueling options.

Forward Looking Statements

This press release contains “forward-looking statements” Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release except as may be required under applicable securities law.

For further information, please contact:

Investor and Media Contact
Tradigital Investor Relations
John McNamara
john@tradigitalir.com

FAQ

What is the reverse stock split ratio announced by EzFill Holdings (EZFL)?

EzFill Holdings (EZFL) announced a 1 for 2.5 reverse stock split, effective July 25, 2024.

Why is EzFill Holdings (EZFL) implementing a reverse stock split?

EzFill is implementing the reverse stock split to regain compliance with Nasdaq's continued listing requirement of maintaining at least $2,500,000 in stockholders' equity.

How will the reverse split affect EzFill's (EZFL) outstanding shares?

The reverse split will reduce EzFill's outstanding common stock from approximately 4.97 million shares to 1.99 million shares.

When will EzFill's (EZFL) stock begin trading on a split-adjusted basis?

EzFill's common stock is expected to begin trading on a split-adjusted basis on the Nasdaq Capital Market on July 25, 2024.