LOS ALAMITOS, Calif. - Verb Technology Company, Inc. (NASDAQ: NASDAQ:VERB), a company specializing in interactive video-based sales applications, has announced a 1-for-200 reverse stock split of its common stock shares, which is set to take effect at the start of trading on October 9, 2024. This decision follows a significant majority of stockholder votes in favor of authorizing the Board of Directors to implement the split during the annual meeting held on September 26, 2024.
The reverse stock split aims to reduce the number of outstanding common stock from approximately 152.6 million shares to about 763,230 shares, with the par value remaining unchanged at $0.0001 per share. The company anticipates that this move will elevate the market price per share of its common stock, potentially satisfying the Nasdaq Capital Market's minimum bid price requirement of $1.00.
Stockholders do not need to take any action as the post-split shares will be automatically adjusted in their accounts. Proportional adjustments will be made to the company's outstanding stock options and warrants, including the applicable exercise price. No fractional shares will be issued; instead, stockholders will receive a rounded up whole share for any fractional share resulting from the split.
The reverse stock split affects all common stockholders proportionally and will not alter their percentage of ownership, except for minor changes due to the rounding up of fractional shares. Further details on the reverse stock split are available in the company's September 27, 2024, Form 8-K filing and the definitive proxy statement filed on August 16, 2024.
Verb Technology operates the MARKET.live platform, a livestream social shopping venue, and has introduced GO FUND YOURSELF!, an interactive social crowd funding platform. The company is headquartered in Las Vegas, NV, with production facilities in Los Alamitos, California, and Philadelphia, PA.
This news article is based on a press release statement from Verb Technology Company, Inc.
In other recent news, Verb Technology has announced a reverse stock split at a 1-for-200 ratio, aiming to consolidate the number of existing shares of common stock into fewer shares. This move comes as the company faces potential delisting from the Nasdaq Stock Market due to its share price falling below the minimum bid price requirement. To address this issue, Verb Technology has requested a hearing before the Nasdaq Hearings Panel.
In addition to these financial maneuvers, Verb Technology has cancelled its planned securities offering after assessing its financial position and capital requirements. The company reported a significant improvement in its audited financial statements for 2023, with cash and equivalents standing at approximately $14.2 million and notes payable around $1.2 million.
On the partnership front, Verb Technology has teamed up with BeautyStat for a live shopping event on TikTok, marking an expansion of its interactive sales applications. The company also entered into a significant partnership with TikTok Shop, which is expected to generate revenue through service fees and a percentage of monthly revenue from TikTok stores established via their platform. These are the recent developments surrounding Verb Technology.
InvestingPro Insights
As Verb Technology Company, Inc. (NASDAQ: VERB) prepares for its 1-for-200 reverse stock split, InvestingPro data provides additional context to the company's financial situation. With a market capitalization of just $7.06 million, VERB is clearly struggling in the competitive interactive video-based sales applications sector.
InvestingPro Tips highlight that VERB is "trading at a low Price / Book multiple" of 0.41, which could indicate that the stock is undervalued. However, this should be viewed cautiously in light of other metrics. The company is "quickly burning through cash" and "analysts do not anticipate the company will be profitable this year." These factors likely contribute to the decision to implement a reverse stock split to maintain Nasdaq listing requirements.
The company's financial health appears precarious, with revenue for the last twelve months as of Q2 2024 at just $0.1 million. Despite a staggering revenue growth of 684.62% over the same period, the operating income margin stands at an alarming -11,788.24%, suggesting severe operational inefficiencies.
VERB's stock performance has been particularly weak, with InvestingPro data showing a one-year price total return of -92.53% as of the latest available data. This poor performance aligns with the InvestingPro Tip that the "stock has fared poorly over the last month" and explains the urgency behind the reverse stock split to boost the share price.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for VERB, providing a deeper understanding of the company's challenges and potential.
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