Connexa Applies for Imminent 1:20 Reverse Split to Remedy Bid Price Delisting Notice
Connexa Sports Technologies (Nasdaq: YYAI) announced a 1-for-20 reverse stock split to address a delisting notice from Nasdaq due to non-compliance with bid price requirements. The reverse split is expected to take effect on June 28, 2024, following shareholder approval on May 15, 2024. Upon Nasdaq's approval, Connexa will regain compliance, negating the need for a hearing. The company is also undergoing a change in control, transferring the Slinger Bag business to a private entity. More details are available at connexasports.com.
- 1-for-20 reverse stock split expected to boost stock price.
- Shareholder approval received for reverse split.
- Reverse split scheduled for June 28, 2024.
- Nasdaq compliance to be regained post-approval.
- No need for a delisting hearing post-compliance.
- Ongoing change in control might streamline operations.
- Received delisting notice from Nasdaq on June 11, 2024.
- Reverse split indicates current stock price is significantly low.
- Potential shareholder dilution due to reverse split.
- Change in control and transfer of Slinger Bag to a private entity may cause instability.
Insights
Connexa Sports Technologies Inc. plans a 1-for-20 reverse stock split, a significant move to address its delisting notice from Nasdaq. This means that for every 20 shares currently owned, investors will receive 1 new share, effectively raising the stock price to meet Nasdaq's minimum bid price requirements. Reverse splits often indicate that a company is trying to avoid delisting, which can be a red flag. However, for existing investors, it helps maintain the stock's marketability and liquidity on a major exchange.
The
For retail investors, understanding the risks and rewards is crucial. A reverse split might prevent delisting, but it can also be a sign of deeper issues, evidenced by the need to consolidate shares significantly. Additionally, the future transfer of the Slinger Bag business to a private company could alter the company's financial landscape, making it essential to stay informed about these developments.
From a market dynamics perspective, Connexa's reverse split provides insight into its competitive position in the sports technology industry. The action primarily aims to meet Nasdaq's listing requirements, highlighting concerns about long-term investor confidence. The potential transfer of the Slinger Bag business to a private entity adds another layer of complexity. This might streamline Connexa's operations and focus, but it also removes a potentially profitable segment from the public market view.
Retail investors should watch how these changes impact Connexa's overall market strategy and performance. A successful reverse split might temporarily buoy stock prices, but sustainable growth depends on how well the company leverages its remaining assets and market opportunities post-restructuring.
Understanding such moves within the broader industry context helps investors predict market reactions and adjust their strategies accordingly.
| ● Reverse Split Expected to take place on or about June 28, 2024 |
| ● Upon receipt of Nasdaq approval, Connexa will regain Bid Price Compliance |
Windsor Mills, MD, June 17, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq: YYAI), the owner of Slinger Bag and Gameface AI, announced that on June 17, 2024, following receipt of stockholder approval at its annual general meeting held on May 15, 2024, the Company is submiting an application to Nasdaq to effect a 1-for-20 reverse split of its common stock (the “Reverse Split”) with a request to become effective Monday morning, June 28, 2024. After Nasdaq approval, the pending Delisting Notice, received on June 11, 2024, should be withdrawn, there will be no further need for a hearing and Connexa will regain Nasdaq compliance.
“As already made public and approved by Connexa shareholders, the company is in the process of Yuanyu Enterprise Management effecting a change in control, which will result in the Slinger Bag business being transferred to a private company. It is unfortunate that this process, including the shareholder-approved 1-for-20 reverse split, has not been completed ahead of the bid price compliance deadline, resulting in the receipt of a delisting notice. However, the reverse split is now expected to take place in the coming days, subject to Nasdaq approval, and once complete will result in our bid price requirement once again being met,” commented Mike Ballardie, CEO of Connexa.
More detailed information on Connexa Sports Technologies and Slinger Bag can be found at www.connexasports.com
About Connexa Sports Technologies:
Connexa Sports is a leading connected sports company delivering products, technologies, and Sport-as-a-Service across a range of sport verticals. Connexa’s mission is to reinvent sports through technological innovation driven by an unwavering focus on today’s sports consumer.
CNXA Contact Information:
investors@connexasports.com
www.connexasports.com
About Yuanyu Enterprise Management Co., Limited
Yuanyu Enterprise Management Co., Limited (YYEM) operates across the rapidly emerging love & marriage sector. YYEM owns numerous patents, technologies and algorithms that drive its big data and matchmaking analyses, deriving its current revenues from royalties. YYEM has multiple licensing agreements in place for non-Asia regions and, in addition, plans to open subsidiary companies in core Asia markets.
YYEM Contact Information:
info@yuanyuenterprise.com
www.yuanyuenterprise.com
Additional Information and Where to Find It
The Company’s stockholders will be able to obtain relevant documents filed with the SEC from the SEC’s website at www.sec.gov or from the Company’s website at https://www.connexasports.com/investor-relations/
Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates, expectations and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others:
| ● | uncertainties as to Nasdaq approval of the reverse split, the change of control and the share exchange agreement, including the risk that one or more of the transactions may involve unexpected costs, liabilities or delays; | |
| ● | the risks associated with the company’s relatively low public float, which may result in the company’s common stock experiencing significant price volatility; | |
| ● | the possibility that competing transaction proposals may be made; | |
| ● | the effects that the announcement, pendency or consummation of the proposed acquisition of YYEM and the spin-off of the Slinger Bag business may have on the Company and its current or future business and on the price of the common stock; | |
| ● | the possibility that various closing conditions for acquisition of YYEM and the spin-off of the Slinger Bag business may not be satisfied or waived, or any other required consents or approvals may not be obtained within the expected timeframe, on the expected terms, or at all; | |
| ● | the effects that a termination or suspension of the acquisition of YYEM and the spin-off of the Slinger Bag business may have on the company, including the risk that the price of the common stock may decline significantly if the acquisition of YYEM and the spin-off of the Slinger Bag business is not completed; | |
| ● | uncertainties regarding the company’s focus, strategic plans and other management actions; | |
| ● | the risks associated with potential litigation related to the transactions contemplated by the acquisition of YYEM and the spin-off of the Slinger Bag business or related to any possible subsequent financing transactions or acquisitions or investments; | |
| ● | uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; | |
| ● | and other factors, including those set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2023 and subsequent Quarterly Reports on Form 10-Q. | |
Forward-looking statements included in this report speak only as of the date each statement is made. Neither the company nor any person undertakes any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.
FAQ
When is Connexa's reverse stock split scheduled?
What is the ratio for Connexa's reverse stock split?
Why is Connexa implementing a reverse stock split?
What is the impact of Connexa's reverse stock split on Nasdaq compliance?
What changes are expected in Connexa's business structure?
