Fathom Digital Manufacturing 1-For-20 Reverse Stock Split Becomes Effective
Portfolio Pulse from Happy Mohamed
Fathom Digital Manufacturing Corp. (FATH) has announced that its 1-for-20 reverse stock split has become effective on September 28, 2023. The reverse stock split reduced the number of issued and outstanding shares of the company's Class A common stock from approximately 70.1 million to approximately 3.5 million. The primary goal of the reverse stock split is to increase the per share market price of the company's Class A common stock to meet the minimum $1.00 average closing price requirement for continued listing on the NYSE.
September 28, 2023 | 8:35 pm
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Fathom's 1-for-20 reverse stock split has reduced the number of its Class A common shares from 70.1 million to 3.5 million. This move is aimed at increasing the per share market price to meet NYSE's minimum $1.00 average closing price requirement.
The reverse stock split will reduce the number of Fathom's outstanding shares, which could lead to an increase in the stock's price per share. However, the impact on the stock's price will depend on market reaction to this news. The move is aimed at maintaining the company's listing on the NYSE, which requires a minimum average closing price of $1.00. This could be seen as a positive move by investors, but it could also be seen as a sign of financial distress, which could negatively impact the stock's price.
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