Grom Social Enterprises, Inc. Announces 1-For-20 Reverse Stock Split
Portfolio Pulse from Happy Mohamed
Grom Social Enterprises, Inc. (NASDAQ:GROM) has announced a 1-for-20 reverse stock split of its common shares to comply with Nasdaq's minimum bid price requirement. The reverse split will be effective on September 7, 2023, and the company's common stock will trade under the same symbol, GROM. Post-split, the company will have approximately 452,219 shares of common stock issued and outstanding. The exercise price per share of common stock subject to the company's warrants will be proportionately increased.
September 06, 2023 | 5:41 pm
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Grom Social Enterprises' 1-for-20 reverse stock split could potentially increase the stock's price by reducing the number of outstanding shares. However, it may also indicate underlying issues with the company's performance.
A reverse stock split reduces the number of shares outstanding, which can lead to an increase in the stock price. However, it's often a strategy used by companies struggling to meet exchange listing requirements, which could indicate underlying issues with the company's performance.
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