Hydrofarm Announces Reverse Stock Split
Hydrofarm Holdings Group (HYFM) has announced a 1-for-10 reverse stock split effective February 12, 2025, at 5:00 pm Eastern Time. The stock will trade on a split-adjusted basis on Nasdaq starting February 13, 2025, under the same symbol 'HYFM'. This strategic move aims to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share.
The reverse split will reduce outstanding shares from 46,144,512 to approximately 4,614,451, while maintaining the total authorized shares. Stockholders' ownership percentages will remain unchanged, except for fractional shares, which will be settled in cash based on the closing price on February 12, 2025. The company's equity incentive plans, stock options, restricted stock units, and performance stock units will be proportionally adjusted.
Hydrofarm Holdings Group (HYFM) ha annunciato un consolidamento azionario inverso 1-per-10 che entrerà in vigore il 12 febbraio 2025, alle 17:00 ora orientale. Le azioni saranno negoziate su una base rettificata per il consolidamento su Nasdaq a partire dal 13 febbraio 2025, sotto lo stesso simbolo 'HYFM'. Questa mossa strategica mira a riacquistare la conformità con il requisito di prezzo minimo di offerta di Nasdaq di $1,00 per azione.
Il consolidamento ridurrà le azioni in circolazione da 46.144.512 a circa 4.614.451, mantenendo tuttavia il totale delle azioni autorizzate. Le percentuali di proprietà degli azionisti rimarranno invariate, eccetto per le azioni frazionarie, che saranno liquidate in contanti in base al prezzo di chiusura del 12 febbraio 2025. I piani di incentivi azionari della società, le opzioni sulle azioni, le unità di azioni restrittive e le unità di azioni legate alle performance saranno adeguate proporzionalmente.
Hydrofarm Holdings Group (HYFM) ha anunciado un split inverso de acciones 1-por-10 que entrará en vigor el 12 de febrero de 2025, a las 5:00 p. m., hora del este. Las acciones se negociarán con base ajustada por split en Nasdaq a partir del 13 de febrero de 2025, bajo el mismo símbolo 'HYFM'. Este movimiento estratégico tiene como objetivo recuperar el cumplimiento con el requisito de precio mínimo de oferta de Nasdaq de $1.00 por acción.
El split inverso reducirá las acciones en circulación de 46,144,512 a aproximadamente 4,614,451, manteniendo sin embargo el total de acciones autorizadas. Los porcentajes de propiedad de los accionistas permanecerán sin cambios, excepto por las acciones fraccionarias, que se liquidarán en efectivo según el precio de cierre del 12 de febrero de 2025. Los planes de incentivos en acciones de la empresa, las opciones sobre acciones, las unidades de acciones restringidas y las unidades de acciones vinculadas al rendimiento se ajustarán proporcionalmente.
하이드로팜 홀딩스 그룹 (HYFM)은 1대 10 비례 매각을 2025년 2월 12일 동부 표준시 오후 5시에 시행한다고 발표했습니다. 주식은 2025년 2월 13일부터 나스닥에서 동일한 기호 'HYFM'으로 조정된 분할 기반으로 거래됩니다. 이 전략적 조치는 나스닥의 최소 매수가 요구 사항인 주당 $1.00의 준수를 회복하기 위한 것입니다.
비례 매각으로 인해 발행 주식 수는 46,144,512주에서 약 4,614,451주로 줄어들며, 총 허용 주식 수는 그대로 유지됩니다. 주주들의 소유 비율은 변경되지 않지만, 분할 주식은 2025년 2월 12일의 종가를 기준으로 현금으로 정산됩니다. 회사의 주식 인센티브 계획, 주식 옵션, 제한 주식 단위 및 성과 주식 단위는 비례적으로 조정됩니다.
Hydrofarm Holdings Group (HYFM) a annoncé un rachat d'actions inversé 1-pour-10 qui prendra effet le 12 février 2025 à 17h00 heure de l'Est. Les actions seront négociées sur une base ajustée en fonction du rachat sur Nasdaq à partir du 13 février 2025, sous le même symbole 'HYFM'. Ce mouvement stratégique vise à retrouver la conformité avec l'exigence de prix de vente minimum de Nasdaq de 1,00 $ par action.
Le rachat inversé réduira le nombre d'actions en circulation de 46 144 512 à environ 4 614 451, tout en maintenant le total des actions autorisées. Les pourcentages de propriété des actionnaires resteront inchangés, sauf pour les actions fractionnaires, qui seront réglées en espèces en fonction du prix de clôture du 12 février 2025. Les plans d'incitation en actions de la société, les options d'achat d'actions, les unités d'actions restreintes et les unités d'actions de performance seront ajustés proportionnellement.
Hydrofarm Holdings Group (HYFM) hat einen 1-zu-10-Aktienumtausch bekannt gegeben, der am 12. Februar 2025 um 17:00 Uhr Eastern Time in Kraft tritt. Die Aktien werden ab dem 13. Februar 2025 an der Nasdaq unter dem gleichen Symbol 'HYFM' auf einer umgerechneten Grundlage gehandelt. Dieser strategische Schritt zielt darauf ab, die Einhaltung der Mindestangebotspreisanforderung von Nasdaq von $1,00 pro Aktie wiederzuerlangen.
Der Umtausch reduziert die ausgegebenen Aktien von 46.144.512 auf etwa 4.614.451, während die Gesamtzahl der autorisierten Aktien erhalten bleibt. Die Eigentumsanteile der Aktionäre bleiben unverändert, mit Ausnahme von Bruchaktien, die basierend auf dem Schlusskurs am 12. Februar 2025 in bar abgewickelt werden. Die Eigenkapitalanreizpläne des Unternehmens, die Aktienoptionen, die beschränkten Aktieneinheiten und die leistungsabhängigen Aktieneinheiten werden proportional angepasst.
- Strategic action to maintain Nasdaq listing compliance
- No change in stockholders' ownership percentage
- Indicates stock price has fallen below $1.00, triggering listing compliance issues
- Reduction in total shares could potentially affect stock liquidity
Insights
The announced 1-for-10 reverse stock split by Hydrofarm represents a critical but potentially concerning development for investors. This defensive maneuver, while technically maintaining Nasdaq listing compliance, often signals deeper underlying challenges. With a micro-cap market value of just
The mechanics are straightforward - each 10 shares will convert to 1 share, reducing outstanding shares from 46.1 million to approximately 4.6 million. However, historical data suggests reverse splits often precede further price declines, with success rates below
Several critical factors warrant investor attention:
- The company's decision to maintain total authorized shares rather than reduce them proportionally could signal potential future dilution
- The cash settlement of fractional shares based on the February 12 closing price could create minor selling pressure
- The adjustment of equity incentive plans and outstanding securities maintains proportional economics but adds complexity to valuation models
While reverse splits are technically neutral events, they often reflect management's concern about continued listing compliance and organic options for share price appreciation. The hydroponics industry's challenging environment and Hydrofarm's micro-cap status compound these concerns. Investors should carefully monitor post-split trading patterns and any signs of improved fundamental performance that could support the higher nominal share price.
SHOEMAKERSVILLE, Pa., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) (“Hydrofarm” or the “Company”) today announced that its Board of Directors has approved a 1-for-10 reverse stock split of the Company’s common stock, par value
The reverse stock split is intended to regain compliance with the minimum bid price requirement of
The reverse stock split will affect all stockholders uniformly and will not alter the stockholder’s percentage ownership interest in the Company, except to the extent that the reverse stock split results in any of the Company’s stockholders owning a fractional share as described in more detail below. The reverse stock split will reduce the number of shares of common stock issued and outstanding from 46,144,512 to approximately 4,614,451. The total authorized number of shares will not be reduced. No fractional shares will be issued in connection with the reverse stock split. Each stockholder who would otherwise be entitled to receive a fraction of a share of the Company’s common stock will be entitled to receive a cash payment based on the closing price per share of the Company’s common stock as quoted on the Nasdaq Capital Market on February 12, 2025.
As of the effective date of the reverse stock split, the number of shares of common stock available for issuance under the Company’s equity incentive plans and issuable upon the exercise of stock options, restricted stock units and performance stock units outstanding immediately prior to the reverse stock split will be proportionately affected by the reverse stock split. The exercise prices of the Company’s outstanding options, restricted stock units and performance stock units will be adjusted in accordance with their respective terms.
Continental Stock Transfer and Trust Company, the Company's transfer agent, will act as the exchange agent for the reverse stock split. Stockholders with common stock in “street name” will receive instructions from their brokers.
About Hydrofarm Holdings Group, Inc.
Hydrofarm is a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, including grow lights, climate control solutions, growing media and nutrients, as well as a broad portfolio of innovative and proprietary branded products. For over 40 years, Hydrofarm has helped growers make growing easier and more productive. The Company’s mission is to empower growers, farmers and cultivators with products that enable greater quality, efficiency, consistency and speed in their grow projects.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release, other than statements of historical fact, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company’s management, and the Company’s assumptions regarding such performance and plans are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance,” “outlook,” “projected,” “believe,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:
The market in which we operate has been substantially adversely impacted by industry conditions, including oversupply and decreasing prices of the products the Company's end customers sell, which, in turn, have materially adversely impacted the Company's sales and other results of operations and which may continue to do so in the future; If industry conditions worsen or are sustained for a lengthy period, we could be forced to take additional impairment charges and/or inventory and accounts receivable reserves, which could be substantial, and, ultimately, we may face liquidity challenges; Although equity financing may be available, the Company's current stock prices are at depressed levels and any such financing would be dilutive; Interruptions in the Company's supply chain could adversely impact expected sales growth and operations; We may be unable to meet the continued listing standards of Nasdaq; Our restructuring activities may increase our expenses and cash expenditures, and may not have the intended cost saving effects; The highly competitive nature of the Company’s markets could adversely affect its ability to maintain or grow revenues; Certain of the Company’s products may be purchased for use in new or emerging industries or segments, including the cannabis industry, and/or be subject to varying, inconsistent, and rapidly changing laws, regulations, administrative and enforcement approaches, and consumer perceptions and, among other things, such laws, regulations, approaches and perceptions may adversely impact the market for the Company’s products; The market for the Company’s products has been impacted by conditions impacting its customers, including related crop prices and other factors impacting growers; Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit the Company’s ability to market all of its products; Damage to the Company’s reputation or the reputation of its products or products it markets on behalf of third parties could have an adverse effect on its business; If the Company is unable to effectively execute its e-commerce business, its reputation and operating results may be harmed; The Company’s operations may be impaired if its information technology systems fail to perform adequately or if it is the subject of a data breach or cyber-attack; The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Company’s business; Acquisitions, other strategic alliances and investments could result in operating and integration difficulties, dilution and other harmful consequences that may adversely impact the Company’s business and results of operations. Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s annual, quarterly and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.
Investor Contact
Anna Kate Heller / ICR
ir@hydrofarm.com
FAQ
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