Micromobility.com Inc. Announces Shareholder Approval For 1-For-150 Strategic Reverse Split And Expansion Of Share Capital
Portfolio Pulse from Benzinga Newsdesk
Micromobility.com Inc. (NASDAQ:MCOM) announced shareholder approval for a 1-for-150 reverse stock split and an increase in authorized shares from 400 million to 1 billion. The reverse split is set for December 4, 2023, aiming to optimize capital structure and support growth. The company also plans to remove Class B common stock to simplify its structure and attract investors. Additionally, MCOM issued a $4.0 million convertible promissory note to Yorkville, convertible at $0.25 per share, to strengthen working capital with a maturity date of March 31, 2024.
November 13, 2023 | 5:03 pm
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Micromobility.com Inc. shareholders approved a 1-for-150 reverse stock split and an increase in authorized shares, aiming to improve capital structure and growth prospects. The company also issued a convertible note to enhance working capital.
The reverse stock split and share capital increase are typically neutral to slightly positive as they can improve the perception of the company's financial health and potentially lead to a higher stock price. However, the issuance of a convertible note is a form of debt that could dilute existing shareholders if converted, which may counterbalance the potential positive impact of the reverse split.
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