Phunware, renowned for its cutting-edge Location Based SaaS solutions and an array of integrated enterprise cloud platforms, made a significant announcement today. On February 26, 2024, Phunware announced plans for a 1-for-50 reverse stock split of its issued and outstanding common stock, each with a par value of $0.0001 per share. This strategic move, set to take effect at 5 PM Eastern Time on February 26, 2024, will lead to a post-split adjusted trading commencement on February 27, 2024, under the familiar trading symbol “PHUN.”
The decision to implement the reverse stock split came following authorization from the stockholders of Phunware at the annual meeting held on December 20, 2023. The stockholders greenlit the proposal granting the company’s Board of Directors the authority to enact a reverse stock split at a ratio ranging from one-for-ten (1:10) to one-for-fifty (1:50). The primary aim of this move is to bolster the market price per share of Phunware’s common stock and regain compliance with the minimum bid continued listing requirement of The Nasdaq Capital Market.
In the wake of this announcement, Phunware’s stock experienced a notable decline, opening trading at $0.19 on Friday morning, down from the previous day’s close at $0.25. However, the company assures investors that this reverse stock split is a strategic maneuver designed to fortify the position of Phunware in the market and enhance shareholder value over the long term.
At the time of this publication, Phunware Inc stock (PHUN) has witnessed a decline.
Phunware Inc
Current Price: $0.19
Change : -0.06
Change (%): (-23.80%)
Volume: 76.0M
Source: Tomorrow Events Market Data
As part of the reverse stock split, every 50 shares of common stock currently outstanding will automatically consolidate into one share. Importantly, no fractional shares will be issued, with shareholders entitled to rounding up their fractional shares to the nearest whole share. The reverse split will not alter the par value of the common stock nor affect the rights or preferences associated with it.
Upon completion of the reverse stock split, Phunware is expected to have approximately 8 million shares of common stock issued and outstanding. Notably, this move will uniformly impact all stockholders and will not alter any individual’s percentage interest in the company’s equity, except for fractional shares.
Continental Stock Transfer & Trust Company, Phunware’s transfer agent, is facilitating the reverse stock split process. Stockholders holding their shares in book-entry form or brokerage accounts need not take any action, though beneficial holders are encouraged to reach out to their bank, broker, or custodian for any procedural queries.
In summary, Phunware’s decision to implement a reverse stock split underscores its commitment to strategic growth and market compliance, positioning the company for enhanced stability and shareholder value in the evolving landscape of enterprise technology.
