MESA, Ariz. - Iveda Solutions, Inc. (NASDAQ: IVDA), a provider of cloud-based video AI search and surveillance technologies, announced a 1-for-8 reverse stock split of its common stock and a corresponding adjustment to its publicly traded common stock purchase warrants. The reverse stock split is aimed at maintaining the company's listing on the Nasdaq Capital Market.
Each eight shares of Iveda's common stock, with a par value of $0.00001 per share, will be combined into one share. The publicly traded common stock purchase warrants (NASDAQ:IVDAW) will also be adjusted so that eight warrants will be entitled to acquire one share of common stock at a revised purchase price per share of $34.00, or $4.25 per warrant. This adjustment will reduce Iveda's authorized common stock from 37,500,000 shares to 4,687,500 shares.
The company's common stock has been assigned a new CUSIP number, while the common stock purchase warrants will retain their current CUSIP number. The common stock is expected to begin trading on a split-adjusted basis starting Tuesday, September 17, 2024. No fractional shares will be issued, and any resulting fractional shares will be rounded up to the next whole share.
David Ly, Chairman and CEO of Iveda, stated that the reverse stock split is intended to maintain the company’s listing on the Nasdaq Capital Market. However, he cautioned that the company cannot assure that the post-split stock price will reflect the reverse split ratio or that it will remain above the pre-split trading price.
Iveda operates globally, providing solutions that enhance public safety, security, elderly care, energy efficiency, and environmental preservation. The company is headquartered in Mesa, Arizona, with a subsidiary in Taiwan.
The information in this article is based on a press release statement from Iveda Solutions, Inc. It is important to note that forward-looking statements in the press release are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
In light of Iveda Solutions, Inc.'s (NASDAQ: IVDA) recent announcement of a reverse stock split, investors may be seeking additional context to understand the company's financial position and market performance. According to InvestingPro data, Iveda holds more cash than debt on its balance sheet, which is a positive indicator of the company's ability to meet its short-term obligations. This is reinforced by the fact that its liquid assets exceed its short-term liabilities, providing some financial flexibility.
However, Iveda's stock has experienced significant volatility and a decline in price over various time frames, including the last week, month, and year. The InvestingPro Tips highlight that the stock has taken a big hit over the last week and has fared poorly over the last month. Additionally, the company's stock generally trades with high price volatility, which could be a concern for risk-averse investors.
It's also notable that analysts do not expect Iveda to be profitable this year, and the company has not been profitable over the last twelve months. These factors, coupled with a valuation that implies a poor free cash flow yield, suggest that investors should be cautious and conduct thorough due diligence. For those interested in a deeper dive into Iveda's financial health and stock performance, InvestingPro offers additional tips and insights, which can be found at https://www.investing.com/pro/IVDA.
As of now, there are 13 additional InvestingPro Tips available for Iveda Solutions, Inc., providing a comprehensive analysis for investors looking to make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.