ADDvantage Technologies Announces 1-for-10 Reverse Stock Split As Part Of Nasdaq Compliance Plan
Portfolio Pulse from Benzinga Newsdesk
ADDvantage Technologies Group, Inc. (NASDAQ:AEY) has announced a 1-for-10 reverse stock split of its common stock as part of its Nasdaq compliance plan. The reverse stock split is expected to take effect on November 16, 2023. No fractional shares will be issued, instead, stockholders will receive cash in lieu of fractional shares. The number of outstanding shares will be reduced from approximately 14,947,078 to approximately 1,494,707 after the reverse stock split.
November 09, 2023 | 11:45 pm
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ADDvantage Technologies' reverse stock split could potentially increase the stock price in the short term, as the number of outstanding shares will be reduced significantly.
A reverse stock split reduces the number of shares outstanding, which can lead to an increase in the stock price. However, the impact on the company's market capitalization remains neutral as the reduction in shares is offset by an increase in share price. The reverse stock split is part of ADDvantage's compliance plan with Nasdaq, indicating the company's efforts to maintain its listing status.
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