Peraso Announces 1-For-40 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
Peraso Inc. (NASDAQ:PRSO) has announced a 1-for-40 reverse stock split to satisfy Nasdaq's minimum bid price requirement. The split will reduce outstanding shares from approximately 30.7 million to 767,000 and is set to take effect after market close on January 2, 2024. The stock will trade on a split-adjusted basis starting January 3, 2024. This move, approved by stockholders, aims to maintain the company's listing on Nasdaq. All equity awards and warrants will be adjusted accordingly, and the transfer agent will provide instructions to stockholders for the exchange of stock certificates.
December 19, 2023 | 1:11 pm
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Peraso's reverse stock split is a strategic move to comply with Nasdaq's minimum bid price rule and avoid delisting. The reduction in outstanding shares may lead to a temporary increase in stock price due to perceived scarcity, but does not fundamentally alter the company's value.
Reverse stock splits often lead to a short-term increase in share price due to a reduced number of shares available, which can create a perception of scarcity and higher value per share. However, the long-term impact depends on the company's performance and market perception. The reverse split does not change the company's fundamentals, but it is important for maintaining the listing status and can affect investor sentiment.
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