JE Cleantech Holdings Limited Announces Share Consolidation 1-For-3 Reverse Stock Split To Regain NASDAQ Compliance
Portfolio Pulse from Benzinga Newsdesk
JE Cleantech Holdings Limited (NASDAQ:JCSE) has announced a 1-for-3 reverse stock split to regain compliance with NASDAQ's minimum $1.00 bid price per share requirement. The split will be effective from October 13, 2023, and the shares will begin trading on a split-adjusted basis from October 16, 2023. The total number of authorized shares will be reduced from 15,020,000 to 5,006,666. Proportional adjustments will be made to the number of shares issuable upon the exercise of any outstanding stock options and the number of shares issuable pursuant to outstanding restricted stock awards.
October 13, 2023 | 5:15 pm
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JE Cleantech's reverse stock split is aimed at regaining NASDAQ compliance. This could potentially increase the stock's attractiveness to investors, but it also indicates underlying issues that led to the non-compliance.
The reverse stock split will increase the price per share, making it more attractive to certain investors and funds that have minimum share price requirements. However, the need for a reverse split indicates that the company has been struggling to maintain the minimum bid price, which could be a red flag for potential investors.
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