Home Bistro CEO Letter to Shareholders and Stakeholders
Home Bistro (OTC PINK:HBIS) announced its withdrawal from the Nasdaq up-listing and public equity offering due to lengthy regulatory approval processes and unfavorable market conditions. The company executed a reverse stock split to meet Nasdaq's price requirement, despite operational challenges. The prepared meals home delivery business will be discontinued, but Home Bistro continues to operate its Colorado Prime business and remains SEC-reporting. The Board is evaluating strategic options and plans to update stakeholders on material progress.
- Home Bistro continues to operate its Colorado Prime business.
- The company remains an SEC-reporting public company.
- Withdrawal from Nasdaq up-listing diminishes growth prospects.
- Discontinuation of the prepared meals home delivery business reflects operational challenges.
MIAMI BEACH, FL / ACCESSWIRE / November 18, 2022 / Home Bistro, Inc. (OTC PINK:HBIS), ("Home Bistro" or the "Company") today released the following letter to shareholders and stakeholders:
"To Home Bistro Shareholders and Stakeholders,
I want to share and clarify some details of recent events regarding our company, its businesses, share price and future direction.
Starting in November 2021, the Company had undertaken extensive efforts to up-list its shares to Nasdaq and complete a public equity offering. To assist us in the process, the Company retained an established investment bank and up-list consulting firm and, to this end, significant time and resources were expended. Unfortunately, obtaining the necessary approvals from the requisite agencies and regulators took a protracted length of time - during which the stock market and economic conditions had eroded considerably. Consequently, the outlook for the Company's share up-listing and public offering were no longer feasible without significant changes to the Company's business model and capitalization. Therefore, the Company is withdrawing its Nasdaq up-listing application.
Regarding the recent reverse stock split of the Company's shares of its common stock, in order to qualify for a Nasdaq listing, companies must meet a minimum share price requirement. The initial purpose of attaining approval for the reverse stock-split was to satisfy this requirement - a very common practice of companies during an up-listing process. Given all of the aforementioned circumstances, the Company's Board of Directors still believed it to be in the best interests of shareholders to effect the reverse split of its shares. The completion of the reverse stock split was publicly announced and a Form 8-K was filed with the SEC, which can be viewed here:
The Company's Board of Directors also decided to discontinue operations that could not become profitable without achieving significant economies of scale in this environment, specifically the prepared meals home delivery business. However, the Company continues to operate its Colorado Prime business and currently remains an SEC-reporting public company. These actions have been documented in the Company's recent 8-K filing, which can be viewed here:
While circumstances beyond our control precluded the preferred outcome, the Company's Board of Directors is continuing to evaluate its strategic options. The Company intends to provide updates on any material progress as it develops."
Respectfully,
Zalmi Duchman
CEO
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company's growth objectives and industry outlook (as described herein). Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among others, statements about the Company's future financial performance, the impact of management changes, any organizational restructuring and the sufficiency of capital resources to fund its ongoing operating requirements; statements about the Company's expectations regarding the capitalization, resources and ownership structure; and any other statements other than statements of historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including (i) risks related to the combined entity's access to existing capital and fundraising prospects to fund its ongoing operations, and (ii) other business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Contact:
Zalmi Duchman, CEO
zalmi@homebistro.com
Ph: 631.694.1111
SOURCE: Home Bistro, Inc.
View source version on accesswire.com:
https://www.accesswire.com/727051/Home-Bistro-CEO-Letter-to-Shareholders-and-Stakeholders
FAQ
What did Home Bistro announce regarding its Nasdaq listing on November 18, 2022?
What was the purpose of the reverse stock split for Home Bistro?
Which business segment is Home Bistro discontinuing?
Is Home Bistro still a public company after the announcement?
What future plans does Home Bistro have after the recent announcement?
