iCoreConnect Announces Reverse Stock Split

Rhea-AI Summary

iCoreConnect (NASDAQ: ICCT) announced a 1-for-20 reverse stock split effective December 20, 2024, at 11:59 pm ET. Trading under the same ticker 'ICCT' will resume on December 23, 2024, with a new CUSIP number 450958301. The split will reduce outstanding shares from approximately 33.0 million to 1.6 million, while maintaining 250 million authorized shares. The nominal par value remains at $0.0001 per share. Any fractional shares will be rounded up to the nearest whole number at the broker level. The company's equity compensation plan will be proportionately adjusted.

Positive

• None.

Negative

• Reverse stock split could be seen as a negative signal, often implemented to maintain listing requirements or boost share price artificially
• Significant reduction in outstanding shares (from 33M to 1.6M) may impact stock liquidity

Insights

Financial Analyst

<p>This reverse stock split represents a significant technical adjustment that could impact ICCT's market dynamics. The 1-for-20 consolidation will reduce the float from <b>33 million</b> to approximately <b>1.6 million shares</b>, potentially affecting liquidity and trading patterns. While reverse splits are often viewed negatively as they're frequently implemented by companies struggling to maintain exchange listing requirements, they can sometimes help stabilize share prices and attract institutional investors who may have minimum share price requirements for investment.</p><p>The maintenance of <b>250 million</b> authorized shares while reducing outstanding shares suggests the company is preserving significant flexibility for future capital raising or strategic transactions. For retail investors, it's important to understand that while their share count will decrease by a factor of 20, their total ownership percentage in the company remains unchanged. Think of it like exchanging twenty $1 bills for one $20 bill - the value stays the same, just in a different form.</p>

Market Structure Specialist

<p>The timing and mechanics of this reverse split require careful attention. With implementation occurring after market hours on December 20 and trading resuming December 23, market makers and trading systems will need to adjust their parameters. The new CUSIP number (<b>450958301</b>) is particularly important as it affects clearing and settlement processes. The decision to round up fractional shares at the broker level is notably generous compared to many reverse splits where fractional shares are typically cashed out.</p><p>Looking at the technical implications, the reduced float could lead to increased volatility due to lower liquidity. Historical patterns show that stocks often experience increased spread widths and more volatile price movements immediately following reverse splits as market participants adjust to the new share structure. This is similar to adjusting the zoom level on a map - while the underlying territory remains the same, the scale at which we view it changes significantly.</p>

OCOEE, Fla., Dec. 19, 2024 (GLOBE NEWSWIRE) -- iCoreConnect Inc. (NASDAQ: ICCT), a leading provider of cloud-based software and technology solutions, today announced that it filed an amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to effect a 1-for-20 reverse stock split of its common stock. The reverse stock split will take effect at 11:59 pm (Eastern Time) on December 20, 2024, and the Company’s common stock will open for trading on The Nasdaq Capital Market on December 23, 2024, on a post-split basis, under the existing ticker symbol

“ICCT” but with a new CUSIP number 450958301.

As a result of the reverse stock split, every twenty shares of the Company’s common stock issued and outstanding prior to the opening of trading on December 23, 2024, will be consolidated into one issued and outstanding share, with no change in the nominal par value per share of $0.0001. No fractional shares will be issued in connection with the reverse stock split. Any amount of fractional shares will be rounded up to the nearest whole number at the participant (per broker) level.

As a result of the reverse stock split, the number of shares of common stock outstanding will be reduced from approximately 33.0 million shares to approximately 1.6 million shares, and the number of authorized shares of common stock will remain at 250 million shares.  In addition, the number of shares reserved for issuance under the Company’s equity compensation plan immediately prior to the reverse stock split will be reduced proportionately.

About iCoreConnect Inc.

iCoreConnect Inc. is a SaaS leader in cloud-based software and technology solutions, designed to enhance workflow productivity and profitability in healthcare.

Forward-Looking Statements

Some of the statements in this release are forward-looking statements, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, the timing and completion of the reverse split. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC’s website, www.sec.gov.

Investor Contacts:

IR@icoreconnect.com

888.810.7706, ext 5

FAQ

When will iCoreConnect's (ICCT) 1-for-20 reverse stock split take effect?

The reverse stock split will take effect at 11:59 pm ET on December 20, 2024, with post-split trading beginning on December 23, 2024.

How many shares will ICCT have outstanding after the reverse split?

After the reverse stock split, ICCT's outstanding shares will be reduced from approximately 33.0 million to 1.6 million shares.

What happens to fractional shares in ICCT's reverse stock split?

Fractional shares resulting from the reverse stock split will be rounded up to the nearest whole number at the participant (broker) level.

Will ICCT's ticker symbol change after the reverse stock split?

No, ICCT will continue trading under the same ticker symbol 'ICCT' but with a new CUSIP number 450958301.

How will ICCT's reverse split affect the authorized shares?

The number of authorized shares will remain unchanged at 250 million shares despite the reverse split.