INNOVATE Corp. Announces 1-for-10 Reverse Stock Split of the Company’s Common Stock
INNOVATE Corp. (NYSE: VATE) has announced a 1-for-10 reverse stock split of its common stock, effective August 2, 2024. The primary goal is to increase the per share market price to meet the NYSE's minimum bid price requirement for continued listing. Trading on a split-adjusted basis will commence on August 5, 2024, under the existing symbol 'VATE'.
Key points:
- Every ten shares will be reclassified into one new share
- Adjustments will be made to outstanding equity awards and convertible securities
- The number of authorized shares and par value remain unchanged
- Computershare is acting as the exchange agent
- Stockholders with book-entry shares need not take action; those with certificates must turn them in
INNOVATE Corp. (NYSE: VATE) ha annunciato un raggruppamento azionario inverso 1 a 10 delle sue azioni ordinarie, che entrerà in vigore il 2 agosto 2024. L'obiettivo principale è aumentare il prezzo di mercato per azione per soddisfare il requisito di prezzo minimo di offerta della NYSE per la continuazione della quotazione. Le contrattazioni sulla base del raggruppamento avverranno dal 5 agosto 2024, sotto il simbolo esistente 'VATE'.
Punti chiave:
- Ogni dieci azioni sarà riclassificata in una nuova azione
- Le proporzioni seront modificate per i premi azionari outstanding e i titoli convertibili
- Il numero di azioni autorizzate e il valore nominale rimangono invariati
- Computershare sta agendo come agente di cambio
- Gli azionisti con azioni registrate non devono intraprendere alcuna azione; quelli con certificati devono consegnarli
INNOVATE Corp. (NYSE: VATE) ha anunciado un spliteo inverso de acciones 1 por 10 de sus acciones ordinarias, que entrará en vigor el 2 de agosto de 2024. El objetivo principal es incrementar el precio de mercado por acción para cumplir con el requisito de precio mínimo de oferta de la NYSE para la continuación de la cotización. La negociación sobre la base ajustada comenzará el 5 de agosto de 2024, bajo el símbolo existente 'VATE'.
Puntos clave:
- Cada diez acciones serán reclasificadas en una nueva acción
- Se realizarán ajustes a las recompensas de acciones y a los valores convertibles pendientes
- El número de acciones autorizadas y el valor nominal permanecen sin cambios
- Computershare actuará como agente de intercambio
- Los accionistas con acciones en registro no necesitan tomar ninguna acción; aquellos con certificados deben entregarlos
INNOVATE Corp. (NYSE: VATE)는 2024년 8월 2일부터 시행되는 1대 10 비율의 주식 병합을 발표했습니다. 주된 목표는 주당 시장 가격을 인상하여 NYSE의 최소 입찰 가격 요구 사항을 충족하는 것입니다. 분할 조정된 매매는 2024년 8월 5일부터 현재의 심볼인 'VATE'로 시작됩니다.
주요 내용:
- 매 10주가 새로운 1주로 재분류됩니다.
- 미결 제안된 주식 보상 및 전환 가능 증권에 조정이 이루어집니다.
- 허가된 주식 수와 액면가는 변경되지 않습니다.
- Computershare가 교환 에이전트로 활동합니다.
- 기록된 주식을 가진 주주들은 조치를 취할 필요가 없으며, 증서를 가진 이들은 제출해야 합니다.
INNOVATE Corp. (NYSE: VATE) a annoncé une fusion d'actions inversée de 1 pour 10 de ses actions ordinaires, prenant effet le 2 août 2024. L'objectif principal est d'augmenter le prix de marché par action afin de répondre à l'exigence de prix minimum de l'offre de la NYSE pour le maintien de la cote. Le trading sur une base ajustée débutera le 5 août 2024, sous le symbole existant 'VATE'.
Points clés :
- Chaque dix actions sera reclassée en une nouvelle action.
- Des ajustements seront effectués sur les primes d'actions en cours et les titres convertibles.
- Le nombre d'actions autorisées et la valeur nominale restent inchangés.
- Computershare agit en tant qu'agent de change.
- Les actionnaires avec des actions enregistrées n'ont pas besoin de prendre de mesures ; ceux possédant des certificats doivent les remettre.
INNOVATE Corp. (NYSE: VATE) hat einen 1-zu-10-Rückwärtssplit seiner Stammaktien angekündigt, der am 2. August 2024 wirksam wird. Das Hauptziel besteht darin, den Marktpreis pro Aktie zu erhöhen, um die Mindestgebotsanforderungen der NYSE für die weiterhin gelistete zu erfüllen. Der Handel auf geteilter Basis beginnt am 5. August 2024 unter dem bestehenden Symbol 'VATE'.
Wesentliche Punkte:
- Jede zehn Aktien wird in eine neue Aktie umklassifiziert.
- Es werden Anpassungen an ausstehenden Aktienoptionen und wandelbaren Wertpapieren vorgenommen.
- Die Anzahl der genehmigten Aktien und der Nennwert bleiben unverändert.
- Computershare fungiert als Austauschagent.
- Aktionäre mit Buchaktien müssen keine Maßnahmen ergreifen; diejenigen mit Zertifikaten müssen diese einreichen.
- Attempt to maintain NYSE listing by meeting minimum bid price requirement
- No change in the number of authorized shares or par value of the Common Stock
- Potential dilution of shareholder value due to 1-for-10 reverse stock split
- Risk of not meeting NYSE listing requirements despite the reverse split
A reverse stock split is a corporate action where a company reduces the number of its outstanding shares, while proportionately increasing the share price. In this case, INNOVATE Corp. is implementing a 1-for-10 reverse stock split. For each 10 shares an investor owns, they will now hold one share, with a price roughly 10 times higher.
The primary aim of this move is to boost the per-share market price to meet the minimum bid price requirement for continued listing on the NYSE. Companies must meet specific criteria to remain listed, including maintaining a minimum share price. Failing to do so can lead to delisting, which would push the stock to over-the-counter (OTC) markets, potentially decreasing liquidity and investor interest.
While reverse stock splits are often seen negatively, signaling that the company is struggling with a low share price, it’s not always the case. For INNOVATE Corp., this action could stabilize their stock price in the short term and prevent delisting. However, it doesn't change the fundamental value of the company and if underlying issues causing the stock's decline aren’t addressed, the price could fall again post-split.
Investors should watch for management’s strategies to improve the company's fundamentals in the long term, beyond just technical adjustments to stock prices.
This reverse stock split is Strategic. By consolidating shares, INNOVATE Corp. aims to enhance the perception of its stock and attract institutional investors who might have restrictions on buying lower-priced stocks. This move can also make the stock appear more stable and less volatile.
Yet, investors must be cautious. Reverse stock splits can sometimes indicate deeper issues, such as poor financial health or market performance. The company must demonstrate that this is part of a broader strategy to improve operational performance and not just a temporary fix to a price problem.
Looking forward, the effect on investor sentiment will heavily depend on how well the company communicates its broader strategy. Consistent, effective communication and visible improvement in business metrics post-split will be key in maintaining investor confidence.
NEW YORK, July 19, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. (“INNOVATE” or the “Company”) (NYSE: VATE), a diversified holding company, announced today that its Board of Directors has approved a 1-for-10 reverse stock split of the Company’s common stock, par value
The primary goal of the reverse stock split is to increase the per share market price of the Company’s Common Stock to meet the minimum per share bid price requirement for continued listing on the NYSE. The reverse stock split was approved by the Company’s stockholders at its annual meeting of stockholders held on June 18, 2024.
As a result of the reverse stock split, every ten shares of the Company’s Common Stock issued and outstanding will be automatically reclassified and changed into one new share of the Company’s Common Stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, as well as to the number of shares issuable under the Company’s equity incentive plans and conversion of the Company’s outstanding convertible securities. The Common Stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not affect the number of authorized shares of Common Stock or the par value of the Common Stock.
Computershare, Inc. (“Computershare”), the Company’s transfer agent, is acting as the exchange agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form will not need to take any action. Stockholders holding certificated shares will be required to turn in their existing certificates, and all new shares will be issued in book-entry form, unless such stockholder requests otherwise.
Additional information about the reverse stock split can be found in the Company’s definitive proxy statement filed with the Securities and Exchange Commission (the “SEC”) on April 29, 2024, which is available free of charge at the SEC’s website, www.sec.gov, and on the Company’s website at www.INNOVATECorp.com.
About INNOVATE
INNOVATE Corp. is a portfolio of best-in-class assets in three key areas of the new economy – Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 4,000 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally relate to future events, such as the expected timing of the reverse stock split, the impact of the reverse stock split on the Company’s share price, and the Company’s ability to meet the minimum per share bid price requirement for continued listing on the NYSE. You are cautioned that such statements are not guarantees of future performance and that INNOVATE’s actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause INNOVATE’s actual expectations to differ materially from these forward-looking statements include INNOVATE’s ability to continue to comply with applicable listing standards of the NYSE and the other factors under the heading “Risk Factors” set forth in INNOVATE’s Annual Report on Form 10-K, as supplemented by INNOVATE’s quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. INNOVATE undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
Contact:
Solebury Strategic Communications
Anthony Rozmus
ir@innovatecorp.com
(212) 235-2691
![](https://ml.globenewswire.com/media/MDcxOWExYzItOGU4NC00NjFhLThlZDMtZWViYjI0MDhkYTcyLTEwMzEzODc=/tiny/INNOVATE-Corp-.png)
FAQ
When will INNOVATE Corp's (VATE) 1-for-10 reverse stock split take effect?
What is the purpose of INNOVATE Corp's (VATE) reverse stock split?
How will INNOVATE Corp's (VATE) reverse stock split affect shareholders?