Lightning eMotors to effect a 1-for-20 Reverse Stock Split
Lightning eMotors (NYSE: ZEV) has announced a 1-for-20 reverse stock split of its common stock, effective at 5 p.m. Eastern Time on April 27, 2023. Starting April 28, 2023, shares will trade on a split-adjusted basis. The split conversion means every 20 shares will turn into 1, with no fractional shares issued. Stockholders will receive cash payments for any fractional shares. This move will not change the total number of authorized shares or affect ownership percentages. Existing options and warrants will be proportionally adjusted. Lightning eMotors specializes in providing zero emission commercial vehicles and has been operational in this space since 2009.
- The reverse stock split may improve the company's stock price perception among investors.
- No fractional shares will be issued, allowing for a clean split adjustment for stockholders.
- A reverse stock split can signal potential financial instability, which may concern investors.
- The necessity for a reverse stock split may indicate difficulties in maintaining share price above the NYSE minimum requirement.
Upon the effectiveness of the reverse stock split, every twenty shares of common stock issued and outstanding will automatically be converted into one share of common stock. No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of shares of common stock not evenly divisible by the reverse stock split ratio will automatically be entitled to receive a cash payment equal to the value of the fractional share.
The reverse stock split will not reduce the number of authorized shares of common stock or change the par value of the common stock. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the company's shares of common stock. The common stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. All outstanding options, warrants, restricted stock units, and similar securities entitling their holders to receive or purchase shares of common stock will be proportionally adjusted as a result of the reverse stock split, both in terms of their exercise prices and as well as to the number of underlying shares, as required by the terms of each security. Prior to the reverse stock split, the Company had outstanding issued warrants listed on the NYSE to purchase a total of 14,999,970 shares of common stock, with each whole warrant being exercisable to purchase one share of common stock at
Stockholders who hold shares electronically in book-entry form with
Additional information about the reverse stock split can be found in the Company's definitive proxy statement (the "Proxy Statement") filed with the
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FAQ
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