Siyata Announces 1-For-7 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
Siyata Mobile Inc. (NASDAQ:SYTA) announced a 1-for-7 reverse stock split effective December 4, 2023, to comply with Nasdaq's $1.00 minimum bid price requirement. The stock will trade under the same symbol 'SYTA' with a new CUSIP number. The reverse split will adjust outstanding stock options, warrants, and other convertible securities. No fractional shares will be issued; they will be rounded up to the next whole number. Computershare will act as the exchange agent, and no action is required for shareholders holding shares electronically or through a broker.
December 04, 2023 | 2:01 pm
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Siyata Mobile's reverse stock split is aimed at maintaining compliance with Nasdaq's minimum bid price. This may not guarantee meeting the requirement but is a step towards it. The split could lead to a temporary increase in stock price due to a reduced number of shares outstanding.
Reverse stock splits are often used by companies to lift share prices to meet exchange listing requirements. While this does not fundamentally alter the company's value, it can lead to a short-term increase in stock price due to the perception of a higher price per share and reduced share supply. However, the long-term effect depends on the company's performance and market reception.
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