NEW YORK - The OLB Group, Inc. (NASDAQ:OLB), a FinTech company specializing in merchant services and payment facilitation, has announced a reverse stock split of its common stock at a one-for-ten ratio, approved by shareholders on April 26, 2024. The change will take effect on Monday, May 6, 2024, with the aim of increasing the market price per share to comply with Nasdaq's listing requirements.
As a result of the reverse stock split, every ten shares of OLB's pre-split common stock will be converted into one share of common stock. This consolidation will reduce the total number of issued and outstanding shares from 18,103,462 to approximately 1,810,346. Despite the reduction in the number of shares, the par value per share and the number of authorized shares will remain unchanged. The company's stock will continue trading under the ticker symbol "OLB" but will be assigned a new CUSIP number, 67086U406.
Stockholders will not receive fractional shares in the reverse split. Instead, fractional shares will be rounded down to the nearest whole number, and shareholders will be compensated with cash for the fractional shares they would have otherwise received.
Transfer Online, Inc. is managing the exchange and transfer process for the reverse stock split. Stockholders with physical stock certificates will receive instructions on how to exchange them for new certificates reflecting the post-split share amounts. Those holding shares through brokers or nominees will see their holdings automatically adjusted to account for the reverse stock split.
The OLB Group, a diversified FinTech and eCommerce merchant services provider, is also expanding into services for the underbanked and is planning a spinoff of a Bitcoin mining enterprise to its shareholders.
This reverse stock split is part of OLB's strategy to maintain its compliance with Nasdaq's listing standards and is not indicative of any operational performance. Shareholders and interested investors are encouraged to follow OLB's future press releases and updates via the company's investor relations email.
The information provided here is based on a press release statement from The OLB Group, Inc.
InvestingPro Insights
In light of The OLB Group's recent announcement of a reverse stock split, current and potential investors are keenly observing the company's financial health and stock performance. According to real-time data from InvestingPro, OLB's market capitalization stands at a modest 9.72 million USD, reflecting the company's size in the competitive FinTech market. Despite a challenging financial landscape, with a negative P/E ratio of -0.64 for the last twelve months as of Q4 2023, OLB managed to achieve a revenue growth of 0.67% during the same period.
InvestingPro Tips suggest that OLB's stock has experienced significant return over the last week, with a price total return of 44.44%. This could indicate a short-term positive momentum for the stock, which may be of interest to traders looking for quick gains. However, it's important to note that the stock generally trades with high price volatility, which could mean higher risk for investors. An InvestingPro Tip also points out that OLB has not been profitable over the last twelve months, a factor that could be crucial for long-term investors assessing the company's earning potential.
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