LQR House Inc, a pioneering liquor marketing company known for its dynamic and forward-thinking approach, made a strategic announcement today regarding a substantial change in its common stock structure. The Board of Directors has unanimously approved a 60-for-1 reverse stock split of LQR House stock, subject to the approval of the NASDAQ. Upon securing regulatory approval, the company will promptly issue a news release revealing the effective date of the reverse split.
However, this news has had an immediate impact on the stock value of LQR House, resulting in a noticeable 20% decline.
At the time of this publication, LQR House Inc stock (LQR) has witnessed a decline.
LQR House Inc
Current Price: $0.05
Change : -0.01
Change (%): (-20.03%)
Volume: 143.4M
Source: Tomorrow Events Market Data
The reverse stock split will not only affect existing common stock of LQR House but also extend to the common stock issuable upon the exercise of outstanding stock options and warrants. To maintain simplicity and compliance, the company has decided not to issue fractional shares. Instead, any fractional entitlements will be rounded down to the next highest whole number.
Commenting on the decision, Sean Dollinger, the CEO of LQR House, emphasized the thorough consideration given by the Board of Directors. Dollinger stated, “The Board of Directors carefully evaluated the option of a reverse split and concluded that it is a crucial step at this juncture. This move is essential in establishing a robust capital structure, aligning with the requirements for maintaining NASDAQ compliance.”
In addition to the reverse stock split, LQR House remains steadfast in its commitment to an ongoing repurchase program. The company aims to repurchase up to 2,000,000 shares of its common stock. This strategic move is being executed with precision, leveraging the current significant discount on the stock. The company sees this as an opportune moment to concentrate efforts on enhancing shareholder value through stock buybacks.
The timing of these financial initiatives underscores LQR House’s proactive approach to optimizing its capital structure and maximizing shareholder value. Market analysts are closely monitoring the developments, evaluating the potential impact on the company’s financial performance and positioning in the liquor marketing sector.
Investors and stakeholders are advised to stay tuned for the official news release, which will disclose the effective date of the reverse stock split of LQR House stock once approval from the NASDAQ is obtained. The company remains focused on executing its strategic plans with precision and agility to navigate the evolving landscape of the stock market.
