Crown Electrokinetics Corp. plans a 1-for-150 reverse stock split effective January 30, 2025, to maintain Nasdaq listing.
Quiver AI Summary
Crown Electrokinetics Corp. announced a reverse stock split at a ratio of 1-for-150 shares, effective January 30, 2025, to maintain its Nasdaq listing and strengthen the company’s position for long-term success. This decision, approved by the Board of Directors and stockholders, means that every 150 outstanding shares will convert into one share, with fractional shares rounded up to the nearest whole share. CEO Doug Croxall emphasized that the reverse split is critical for the company’s growth and credibility, backed by a healthy cash balance and expanding revenues. Additionally, the recent onboarding of Andy Mayer and his team is expected to enhance Crown's solutions in the pipeline industry and support recovery efforts in California following wildfires.
Potential Positives
- The company's Board of Directors and stockholders have approved a reverse stock split, which is a positive step towards maintaining its Nasdaq listing, critical for the company's growth and credibility.
- Crown has reported a healthy cash balance exceeding $25 million, indicating strong financial health.
- The addition of industry expert Andy Mayer and his team enhances Crown's capabilities, positioning the company for important agreements and growth opportunities in the pipeline industry and disaster rehabilitation.
- Crown’s commitment to play a role in California’s recovery and rebuilding efforts after wildfires showcases its dedication to social responsibility and community impact.
Potential Negatives
- The implementation of a reverse stock split at a ratio of 1-for-150 suggests that the company's stock price is low and may need to be consolidated to meet listing requirements, which can indicate underlying financial difficulties.
- The necessity of a reverse stock split to maintain a Nasdaq listing raises concern about the company's overall market position and investor confidence.
- The reliance on forward-looking statements implies there are significant uncertainties and risks regarding the company’s future financial performance and operational success.
FAQ
What is the reverse stock split ratio for Crown Electrokinetics Corp.?
Crown Electrokinetics Corp. will implement a reverse stock split at a ratio of 1-for-150 shares.
When will the reverse stock split take effect?
The reverse stock split will be effective on January 30, 2025, at the open of business.
Will the reverse split change my ownership percentage in the company?
No, the reverse stock split will not alter any stockholder's proportional ownership, except for adjustments on fractional shares.
What is the new ticker symbol after the reverse stock split?
Following the reverse stock split, Crown’s common stock will continue to trade under the ticker symbol “CRKN” on Nasdaq.
How will fractional shares be handled in the reverse stock split?
Fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share and not issued separately.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”) , a leading provider of innovative technology infrastructure solutions that benefit communities and the environment, today announced its plan to implement a reverse split of its common stock at a ratio of 1-for-150 shares. The reverse stock split will be effective for marketplace purposes with the open of business on Thursday, January 30, 2025. Following the reverse stock split, Crown’s common stock will continue to trade on The Nasdaq Capital Market under the ticker symbol “CRKN.” The new CUSIP number for the common stock following the reverse stock split will be 228339 503, reflecting the adjusted share structure.
The Company's Board of Directors approved the reverse stock split at a ratio of 1-for-150 shares on January 25, 2025, following approval for the action by Crown's stockholders at a special stockholders meeting on January 14, 2025.
Upon effectiveness of the reverse stock split, every 150 shares of the Company's issued and outstanding common stock will be automatically converted into one share of issued and outstanding common stock. Fractional shares resulting from the reverse stock split will not be issued; instead, fractional shares will be rounded up to the nearest whole share. The reverse stock split will apply uniformly to all stockholders and will not alter any stockholder's proportional ownership in the Company, except for the adjustments related to fractional shares.
“Completing this reverse stock split is a key step in strengthening Crown and positioning the company for long-term success,” said Doug Croxall, CEO and Chairman, Crown. “By consolidating our shares, we are taking a necessary step to maintain our Nasdaq listing, which is critical for our growth and credibility. Crown today is in a much stronger position compared to the past, with a healthy cash balance exceeding $25 million, growing revenues, and exciting opportunities to further expand our innovative solutions portfolio.”
“Our recent addition of Andy Mayer and his highly skilled team marks a transformative moment for Crown. Andy’s unparalleled expertise in the pipeline industry, coupled with his extensive experience in disaster rehabilitation, significantly strengthens our solutions offering and positions us to secure important agreements. As a long-time Los Angeles resident, I am especially proud of Crown’s potential to play a critical role in California’s recovery and rebuilding efforts following the devastating wildfires. We are confident that our expanded capabilities will open new doors, accelerate our growth, and solidify Crown’s place as a leader in delivering innovative infrastructure solutions,” concluded Mr. Croxall.
For more information regarding the reverse stock split, please refer to the Company’s filings with the Securities and Exchange Commission ("SEC") at https://ir.crownek.com/sec-filings .
About Crown
Crown (Nasdaq: CRKN) is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Construction, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit
www.crownek.com
.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown’s future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” . Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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