CAMARILLO, CA - Sacks Parente Golf Company, Inc. (NASDAQ:SPGC), a manufacturer of golf equipment, has announced a 1-for-10 reverse stock split approved by its board of directors. The action is set to take effect at the start of trading on July 30, 2024, on The Nasdaq Capital Market under the ticker symbol SPGC. This move aims to elevate the company's per-share price to meet Nasdaq's minimum bid price requirement for continued listing.
Following the reverse stock split, every 10 shares of issued and outstanding common stock will be converted into one share. The par value will remain the same at $0.001 per share.
Adjustments will also be made to the company's equity awards, options, and warrants, including the exercise price and the number of shares authorized for issuance under equity incentive plans. Stockholders will not receive fractional shares; instead, they will be compensated with cash payments for any fractional shares resulting from the split.
Shareholders holding shares electronically in book-entry form or in brokerage accounts will not need to take any action, as their shares will be automatically adjusted to reflect the reverse stock split. VStock Transfer, LLC will act as the exchange agent for the reverse stock split.
Sacks Parente Golf is known for its innovative golf products, such as the First Vernier Acuity putter and Ultra-Low Balance Point putter technology. The company expanded its manufacturing capabilities in April 2022 with a new facility in St. Joseph, MO, focusing on Newton brand premium golf shafts.
With a commitment to U.S. manufacturing, Sacks Parente Golf also plans to extend its product range into golf apparel and other related items. Its products are currently sold through resellers, its own websites, Club Champion retail stores, and distributors in the United States, Japan, and South Korea.
This announcement is based on a press release statement from Sacks Parente Golf Company, Inc.
InvestingPro Insights
As Sacks Parente Golf Company, Inc. (NASDAQ:SPGC) prepares for a reverse stock split to comply with Nasdaq's listing requirements, investors are closely monitoring the company's financial health and market performance. Here are some key metrics and insights from InvestingPro that shed light on the current standing of SPGC:
InvestingPro Data highlights a significant revenue growth for SPGC, with the latest metrics showing an impressive 183.26% increase in revenue over the last twelve months as of Q1 2024. This is complemented by a quarterly revenue growth of 288.89% in Q1 2024, indicating a robust upward trend in the company's sales. Despite these encouraging numbers, the company's market capitalization stands at a modest 7.85 million USD, reflecting investor caution amidst the broader financial picture.
From the perspective of InvestingPro Tips, it's noteworthy that SPGC holds more cash than debt on its balance sheet, providing a cushion against financial instability. Additionally, analysts anticipate sales growth in the current year, which could signal potential for the company's stock in the face of market challenges. Still, it is important to note that SPGC has been quickly burning through cash and analysts do not expect the company to be profitable this year. This could be a concern for investors looking for immediate returns.
For investors seeking a deeper dive into SPGC's financials and market prospects, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available that could help in making a more informed investment decision. To access these valuable tips, visit https://www.investing.com/pro/SPGC and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This could be a timely resource for shareholders and potential investors as they navigate the implications of the reverse stock split and evaluate Sacks Parente Golf's future in the competitive golf equipment industry.
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