Infobird Co., Ltd Announces 1-For-8 Share Consolidation And Capital Reduction
Portfolio Pulse from Benzinga Newsdesk
Infobird Co., Ltd (NASDAQ:IFBD) announced a 1-for-8 share consolidation and capital reduction to regain compliance with Nasdaq Marketplace Rule 5550(a)(2). The changes, approved by shareholders, will start trading on February 27, 2024, under the same symbol but a new CUSIP number. The consolidation will convert every eight shares into one, with fractional shares rounded up. The capital reduction, pending court approval, will significantly reduce the authorized share capital and adjust the par value of shares.
February 20, 2024 | 4:19 pm
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Infobird's 1-for-8 share consolidation and capital reduction aims to maintain its Nasdaq listing. The consolidation will not alter shareholder percentages, except for fractional adjustments. The capital reduction will change the authorized share capital structure.
The share consolidation and capital reduction are strategic moves to comply with Nasdaq listing requirements, which could stabilize the company's stock price in the short term. However, the impact on the stock price could be neutral as the adjustments are designed to maintain current shareholder equity percentages, barring the minor effect of rounding fractional shares. The confidence in this analysis is high due to the clear objectives and effects outlined by the company.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100