BANZAI INTERNATIONAL, INC. (NASDAQ:BNZI), a prepackaged software services provider, has announced the implementation of a reverse stock split of its Class A common stock, effective as of September 19, 2024. The reverse split, at a ratio of 1-for-50, was approved by the company's Board of Directors following shareholder authorization.
The reverse stock split means every fifty shares of issued and outstanding Class A Common Stock will be combined into one share. As a result, the total number of Banzai International's shares issued and outstanding will be reduced to 916,558 shares.
No fractional shares will be issued; instead, shareholders will receive one whole share in place of any fractional share they would have owned post-split.
The company's Class A common stock will also be assigned a new CUSIP number: 06682J 308, and will trade with a "D" added to its ticker symbol for 20 business days to indicate the reverse split. This corporate action, which is a common practice among public companies seeking to adjust their stock price and liquidity, was filed with Delaware’s Secretary of State and approved by Nasdaq on September 16, 2024.
The reverse stock split is intended to increase the per-share trading price of the company's Class A common stock, potentially improving marketability and compliance with Nasdaq's listing requirements. The company's business address remains at 435 Ericksen Ave, Suite 250, Bainbridge Island, Washington, and its business phone number is (206) 414-1777.
This news is based on a press release statement and is intended to provide shareholders and the investing public with factual information regarding Banzai International's corporate actions.
In other recent news, Banzai International has seen significant developments. The company disclosed the immediate resignation of board member, Mr. Bill Bryant. This change in board composition is not due to any dispute or disagreement with the company's operations, policies, or practices.
In a strategic move, Banzai International appointed Kent Schofield, a former Goldman Sachs (NYSE:GS) executive, to its Board of Directors. This addition is anticipated to contribute valuable insights to Banzai's growth in the marketing technology sector.
Furthermore, a reverse stock split of the company's Class A Common Stock was approved by Banzai's shareholders. The exact ratio and timing of the reverse stock split will be determined by the board of directors.
Banzai International is also grappling with potential delisting from Nasdaq due to non-compliance with the minimum Market Value of Listed Securities requirement. The company has expressed its intention to request a hearing before The Nasdaq Hearings Panel to challenge this.
Lastly, Ascendiant Capital initiated coverage on Banzai International with a Buy rating. This, along with the company's plans for a public stock offering to raise approximately $2.5 million, are among the recent developments that could shape Banzai's future.
InvestingPro Insights
In light of Banzai International's recent reverse stock split, real-time data from InvestingPro offers a deeper look into the financial health and market performance of the company. With a market capitalization of just $2.74 million, Banzai International is navigating challenging financial waters. According to the latest metrics, Banzai International's revenue has seen a decline of 8.46% over the last twelve months as of Q2 2024, reflecting potential headwinds in generating sales growth.
Moreover, the company's stock price has been trading near its 52-week low, and analysts do not anticipate Banzai International will be profitable this year. These InvestingPro Tips highlight the need for investors to consider the company's ability to meet short-term obligations, as its liquid assets currently do not cover these liabilities. Additionally, the stock has fared poorly over the last month, with a 28.34% drop in price total return, emphasizing the recent volatility and bearish sentiment around BNZI shares.
For those looking for more comprehensive analysis, there are additional InvestingPro Tips available that could provide further insights into Banzai International's performance and outlook. Visit https://www.investing.com/pro/BNZI to explore these tips and consider how they might inform your investment decisions.
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