In a sudden turn of events, the stock of Cenntro Electric Group Limited is witnessing a decline today following the company’s announcement yesterday regarding the postponement of the planned reverse split of its outstanding common stock. The reverse split, initially set to be effective on December 1, 2023, has been delayed due to uncertainties surrounding Depository Trust and Clearing Corporation (“DTCC”) eligibility.
At the time of this publication, Cenntro Electric Group Ltd stock (CENN) has witnessed a decline.
Cenntro Electric Group Ltd
Current Price: $0.16
Change : -1.39
Change (%): (-89.68%)
Source: Tomorrow Events Market Data
The exact effective date of the reverse stock split remains elusive until confirmation of DTCC eligibility is obtained. The company anticipates receiving this confirmation in the coming days and pledges to update stakeholders promptly once the information is available.
The purpose behind the previously disclosed 1-for-10 reverse stock split of its outstanding common stock is to ensure compliance with the minimum $1.00 bid price per share requirement of Nasdaq Listing Rule 5550(a)(2) by December 18, 2023. Cenntro Electric Group Limited expresses confidence in meeting this deadline and has no reason to doubt its ability to do so.
Upon the yet-to-be-determined effective date, the company’s common stock is slated to commence trading on the Nasdaq Capital Market on a split-adjusted basis as soon as the market opens. The stock will continue to be identified under the symbol “CENN,” with a new CUSIP number assigned post-reverse stock split, namely Q6519V146.
It is crucial to note that the reverse stock split will uniformly impact all issued and outstanding shares of the company’s common stock. However, it will not alter any stockholder’s percentage of ownership interest, except in cases where the reverse stock split results in fractional shares. The company affirms that no fractional shares will be issued in connection with the reverse stock split. Instead, stockholders will receive one whole share of common stock in exchange for any fractional interest resulting from the reverse stock split. Importantly, the par value of the company’s common stock will remain unchanged after the reverse stock split.
In terms of numbers, the reverse stock split will significantly reduce the number of shares of common stock issued and outstanding. The current count of approximately 304,449,091 shares is expected to be adjusted to approximately 30,444,910 shares, excluding any shares to be issued in exchange for fractional interests. All existing options, warrants, shares issuable upon conversion of the company’s preferred stock, and stock awards will be adjusted in accordance with their terms.
To facilitate the reverse stock split, the company’s transfer agent, Continental Stock Transfer & Trust Company, has been appointed as the exchange agent. While the transfer agent will provide instructions to stockholders of record regarding the potential exchange of stock certificates, it is emphasized that such an exchange is not obligatory.
Cenntro Electric Group Limited remains committed to ensuring transparency and will continue to keep stakeholders informed as developments unfold. The company urges shareholders to stay tuned for updates regarding the effective date of the reverse stock split and related procedures.