MONTREAL - Vision Marine Technologies, Inc. (NASDAQ:VMAR), specializing in electric marine propulsion, has declared a 15-for-1 reverse stock split of its common shares, approved by its Board of Directors. The adjustment is set to take effect at market opening on August 22, 2024, under the ticker "VMAR" with the new CUSIP number 92840Q103.
The action aims to elevate the per-share market price to comply with Nasdaq's minimum $1.00 bid price requirement, following a Determination Letter from Nasdaq on August 15, 2024, indicating non-compliance by the August 14 deadline. Vision Marine initially received a deficiency notice on February 16, 2024, failed to meet the bid price despite a 180-day grace period, and is now addressing the issue through the reverse stock split.
The restructuring will consolidate every fifteen common shares into one, adjusting outstanding equity awards and shares under equity incentive plans accordingly. No fractional shares will be issued; shareholders will receive one whole share for any fractional interest. The reverse split will not alter the number of authorized shares or their par value.
In parallel, Vision Marine has initiated an exchange offer to streamline its capital structure and mitigate the dilutive effect of warrants issued on December 21, 2023. The offer proposes twice the number of common shares and pre-funded common share warrants in exchange for each Warrant surrendered, with a maximum of 5,650,284 common shares available for exchange.
The Determination Letter does not immediately affect Vision Marine's listing on The Nasdaq Capital Market. The company plans to request a hearing with Nasdaq, which will stay any suspension or delisting actions pending the hearing and any potential extension granted by the Panel, which could be up to 180 days from the Determination Letter date.
Vision Marine remains focused on achieving compliance with Nasdaq's requirements and will keep stakeholders informed of its listing status. The company continues to lead in electric propulsion with its E-Motion™ outboard powertrain system, contributing to a more sustainable recreational boating industry.
This news is based on a press release statement and the company's filings with the Securities and Exchange Commission.
In other recent news, Vision Marine Technologies has been forging significant strides in the electric boating industry. The company has announced a partnership with JetRide Holding, LLC, a Florida-based boat club, aimed at expanding its reach in the electric boat rental market and promoting sustainable boating practices. The collaboration will leverage JetRide's extensive network across Florida to introduce Vision Marine's E-Motion™ Electric Powertrain to renters.
In addition to this strategic alliance, Vision Marine has been active in expanding its intellectual property portfolio. The company has filed several patents, including one for a high-voltage marine battery pack integral to its E-Motion™ Marine Powertrain Technology. The battery pack, developed over five years, is set to be used in future recreational electric powerboats. Vision Marine has also filed a patent for its Control & Power Management Software, designed to optimize performance and safety.
These recent developments underline Vision Marine's commitment to innovation and sustainability in the electric boating industry. However, the company's forward-looking statements are subject to risks and uncertainties, as detailed in its filings with the SEC, and may change based on future events or new information.
InvestingPro Insights
In light of Vision Marine Technologies' recent strategic move to execute a reverse stock split, it's crucial to understand the financial context surrounding the company. According to real-time data from InvestingPro, Vision Marine Technologies currently holds a market capitalization of $5.69 million. The company's price-to-earnings (P/E) ratio stands at a negative -0.47, reflecting the challenges it faces in achieving profitability. Over the last twelve months as of Q3 2024, the company has witnessed a revenue decline of 29.12%, indicating a contraction in its financial performance.
While Vision Marine is taking steps to comply with Nasdaq's minimum bid price requirement, InvestingPro Tips suggest that the company is quickly burning through cash and analysts do not anticipate it will be profitable this year. These insights are particularly relevant considering the company's recent financial restructuring efforts. Moreover, with a significant return over the last week, investors may be reacting to the company's proactive measures, such as the reverse stock split and exchange offer.
For investors seeking a deeper dive into Vision Marine's financial health and future prospects, there are an additional 15 InvestingPro Tips available, offering a comprehensive analysis of the company's performance and market position. These insights can be found at InvestingPro's dedicated page for Vision Marine: https://www.investing.com/pro/VMAR.
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