In a strategic move aimed at aligning with Nasdaq’s minimum bid price requirements and enhancing shareholder value, AEye Inc, a global leader in adaptive, high-performance lidar solutions, initiated trading on a split-adjusted basis as of December 27, 2023. The company’s Board of Directors had previously approved a 1-for-30 reverse stock split of its common stock, par value $0.0001 per share, with the effective date set for Tuesday, December 26, 2023, at 5:00 p.m. Eastern Time.
Following the reverse stock split, the Common Stock’s new CUSIP number will be 008183204. Simultaneously, the Company’s publicly traded warrants will maintain their listing on Nasdaq under the symbol “LIDRW.” However, pursuant to the applicable warrant agreement, the number of shares of Common Stock issuable upon exercising each warrant will be proportionately decreased.
AEye Inc’s stock commenced trading on Wednesday at $2.93, a notable increase from the previous day’s closing price of $2.22. This development follows the approval of the reverse stock split by the company’s stockholders during a special meeting held on December 12, 2023.
At the time of this publication, AEye Inc stock (LIDR) has witnessed a surge.
AEye Inc
Current Price: $2.66
Change : +2.59
Change (%): (3,494.59%)
Volume: 5.9M
Source: Tomorrow Events Market Data
During the special meeting, AEye Inc’s stockholders voted to approve amendments to the company’s Second Amended and Restated Certificate of Incorporation, as amended (the “Charter”), to facilitate the reverse stock split. The approved ratio was 1-for-30, with the Board granted the authority to determine the final ratio and the timing of the reverse stock split. Subsequently, the Board greenlit the reverse stock split at the ratio of 1-for-30, effective as of the specified date and time.
As a result of the reverse stock split, every 30 shares of Common Stock issued and outstanding will automatically consolidate into one share of Common Stock. Proportional adjustments will be made to the number of shares underlying the company’s outstanding equity awards, public warrants, private warrants, shares issuable under its equity incentive plans, and other existing agreements. Importantly, there will be no alterations to the number of authorized shares or the par value per share.
To avoid fractional shares, the company has implemented a cash payment mechanism for stockholders entitled to receive fractional shares due to the reverse stock split.
AEye Inc’s CEO, Matt Fisch, expressed confidence in the decision, stating, “After evaluating alternatives, we determined that a reverse stock split was the best course of action to bring the Company in compliance with Nasdaq’s minimum bid price requirements, and our stockholders agreed.” Fisch emphasized that remaining listed on Nasdaq is crucial for liquidity and visibility, essential factors in attracting a broader segment of the investment community. The strategic move aims to eliminate ambiguity surrounding the company’s listing, positioning AEye Inc to execute against its automotive-first strategy and create enhanced value for stockholders.
