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Jet.AI Inc. Announces Reverse Stock Split

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Jet.AI announced a 1-for-225 reverse stock split effective November 12, 2024. The company's stock will continue trading on Nasdaq under symbol JTAI with new CUSIP number 47714H308. The split aims to regain compliance with Nasdaq's minimum bid price requirement and make additional shares available for future issuance. Every 225 shares will automatically convert to one share, with fractional shares rounded up. The split won't change par value or total authorized shares. Proportional adjustments will apply to equity awards, convertible preferred stock, and warrants.

Jet.AI ha annunciato un raggruppamento azionario 1 per 225 che entrerà in vigore il 12 novembre 2024. Le azioni della società continueranno a essere scambiate su Nasdaq con il simbolo JTAI e il nuovo numero CUSIP 47714H308. L'obiettivo di questo raggruppamento è ripristinare la conformità con il requisito del prezzo minimo di offerta di Nasdaq e rendere disponibili ulteriori azioni per future emissioni. Ogni 225 azioni verrà automaticamente convertita in una singola azione, con le azioni frazionarie arrotondate all'unità superiore. Il raggruppamento non influenzerà il valore nominale o il totale delle azioni autorizzate. Modifiche proporzionali si applicheranno ai premi azionari, alle azioni privilegiate convertibili e ai warrant.

Jet.AI anunció un split inverso de acciones 1 por 225 que será efectivo el 12 de noviembre de 2024. Las acciones de la compañía continuarán cotizando en Nasdaq bajo el símbolo JTAI con un nuevo número CUSIP 47714H308. El objetivo de esta división es recuperar la conformidad con el requisito de precio mínimo de oferta de Nasdaq y hacer que haya acciones adicionales disponibles para futuras emisiones. Cada 225 acciones se convertirán automáticamente en una acción, con las acciones fraccionarias redondeadas hacia arriba. La división no cambiará el valor nominal ni el total de acciones autorizadas. Se aplicarán ajustes proporcionales a las recompensas de capital, acciones preferentes convertibles y warrants.

Jet.AI는 2024년 11월 12일 시행되는 1 대 225 분할 주식 거래를 발표했습니다. 회사의 주식은 JTAI라는 심볼로 Nasdaq에서 계속 거래되며, 새로운 CUSIP 번호는 47714H308입니다. 이번 분할의 목표는 Nasdaq의 최소 입찰가 요건을 충족하고 향후 발행을 위한 추가 주식을 확보하는 것입니다. 225주가 자동으로 1주로 전환되며, 분할 주식은 올림 처리됩니다. 분할은 액면가 또는 총 허가 주식 수에 영향을 미치지 않습니다. 비례 조정은 자본 보상, 전환 우선주 및 워런트에 적용됩니다.

Jet.AI a annoncé un découpage inversé d'actions 1 pour 225 qui prendra effet le 12 novembre 2024. Les actions de la société continueront à être négociées sur le Nasdaq sous le symbole JTAI avec un nouveau numéro CUSIP 47714H308. L'objectif de ce découpage est de retrouver la conformité avec les exigences de prix minimum d'offre du Nasdaq et de rendre disponibles des actions supplémentaires pour de futures émissions. Chaque 225 actions sera automatiquement convertie en une action, avec les fractions d'actions arrondies à l'unité supérieure. Ce découpage n'affectera ni la valeur nominale ni le total des actions autorisées. Des ajustements proportionnels s'appliqueront aux récompenses en actions, aux actions privilégiées convertibles et aux bons de souscription.

Jet.AI hat einen 1 zu 225 Reverse-Split angekündigt, der am 12. November 2024 in Kraft tritt. Die Aktien des Unternehmens werden weiterhin an der Nasdaq unter dem Symbol JTAI mit einer neuen CUSIP-Nummer 47714H308 gehandelt. Das Ziel des Splits ist es, die Vorschriften von Nasdaq hinsichtlich des Mindestangebotspreises einzuhalten und zusätzliche Aktien für zukünftige Emissionen verfügbar zu machen. Jede 225 Aktien werden automatisch in eine Aktie umgewandelt, wobei Bruchstücke aufgerundet werden. Der Split wird den Nennwert oder die insgesamt genehmigten Aktien nicht verändern. Proportionale Anpassungen gelten für Eigenkapitalauszeichnungen, wandelbare Vorzugsaktien und Warrants.

Positive
  • Potential to regain Nasdaq listing compliance
  • Additional shares become available for future issuance
  • Fractional shares will be rounded up to benefit shareholders
Negative
  • Reverse split indicates struggle to maintain minimum share price
  • Potential for future dilution through additional share issuance
  • Stock price has declined significantly to necessitate 225:1 reverse split

Insights

This reverse stock split represents a significant defensive move to maintain NASDAQ listing compliance. At a 1-for-225 ratio, this is an unusually large consolidation that signals serious concerns about the company's stock price performance. While the mathematical market cap remains unchanged, such extreme splits often indicate underlying financial stress.

The move will artificially boost the share price by reducing the number of outstanding shares, but it doesn't address fundamental business challenges. Historical patterns show that companies implementing such dramatic reverse splits often struggle to maintain their new price levels. Investors should note that this could impact liquidity and trading dynamics, potentially leading to increased volatility.

The mention of making additional shares available for future issuance suggests potential dilutive financing ahead, which warrants careful monitoring. The automatic rounding up of fractional shares is a minor positive for small shareholders but insignificant to the overall implications.

LAS VEGAS, NV, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Jet.AI Inc. (Nasdaq: JTAI) (the “Company”), today announced that the Company has determined to effect a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-225. The reverse stock split is expected to take effect before markets open on Tuesday, November 12, 2024. The Company’s common stock will continue to be traded on the Nasdaq Capital Market under the symbol JTAI and will begin trading on a split-adjusted basis when the market opens on Tuesday, November 12, 2024. The new CUSIP number for the Company’s common stock following the reverse stock split will be 47714H308.

The reverse stock split is intended to enable the Company to achieve several important corporate objectives, including enabling the Company to regain compliance with the minimum bid price requirement under Nasdaq’s continued listing criteria and making additional shares of common stock available for future issuance.

At the effective time of the reverse stock split, every 225 shares of the Company’s issued and outstanding common stock will be converted automatically into one issued and outstanding share of common stock without any change in the par value per share. Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-225 reverse stock split. The reverse split will not result in any change in the par value per share or the total number of authorized shares of common stock.

The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. Any fractional share of a stockholder resulting from the reverse stock split will be rounded up to a whole share. Proportional adjustments will be made to the number of shares of the Company’s common stock issuable upon exercise or conversion of the Company’s equity awards, convertible preferred stock and warrants, as well as the applicable exercise or conversion price. Stockholders with shares in brokerage accounts should direct any questions concerning the reverse stock split to their broker; all other stockholders may direct questions to the Company’s transfer agent, Continental Stock Transfer & Trust.

About Jet.AI

Jet.AI operates in two segments, Software and Aviation, respectively. The Software segment features the B2C CharterGPT app and the B2B Jet.AI Operator platform. The CharterGPT app uses natural language processing and machine learning to improve the private jet booking experience. The Jet.AI operator platform offers a suite of stand-alone software products to enable FAA Part 135 charter providers to add revenue, maximize efficiency, and reduce environmental impact. The Aviation segment features jet aircraft share ownership, jet card, on-fleet charter, management, and buyer’s brokerage. Jet.AI is an official partner of the Las Vegas Golden Knights, 2023 NHL Stanley Cup® champions. The Company was founded in 2018 and is based in Las Vegas, NV and San Francisco, CA.

Forward-Looking Statements

This press release contains certain statements that may be deemed to be “forward-looking statements” within the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; our ability to maintain the listing of our common stock on Nasdaq; claims relating to alleged violations of intellectual property rights of others; the outcome of any current legal proceedings or future legal proceedings that may be instituted against us; unanticipated difficulties or expenditures relating to our business plan; and those risks detailed in the Company’s most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law.

Investor Contact:

Gateway Group, Inc.
949-574-3860
Jet.AI@gateway-grp.com


FAQ

What is the reverse stock split ratio announced by Jet.AI (JTAI)?

Jet.AI announced a 1-for-225 reverse stock split effective November 12, 2024.

When will Jet.AI's (JTAI) reverse stock split take effect?

The reverse stock split will take effect before markets open on Tuesday, November 12, 2024.

Will Jet.AI's (JTAI) stock symbol change after the reverse split?

No, the stock will continue trading on Nasdaq under the symbol JTAI, but with a new CUSIP number 47714H308.

Why is Jet.AI (JTAI) implementing a reverse stock split?

The reverse split aims to regain compliance with Nasdaq's minimum bid price requirement and make additional shares available for future issuance.

Jet.AI Inc.

NASDAQ:JTAI

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9.35M
153.48M
13.61%
2.07%
8.73%
Software - Application
Air Transportation, Nonscheduled
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United States of America
LAS VEGAS