HAUPPAUGE, N.Y. - Forward Industries, Inc. (NASDAQ: FORD), a company specializing in the design, sourcing, and distribution of products for medical and technology sectors, has announced a 1-for-10 reverse stock split of its common stock, set to take effect on June 18, 2024. This corporate action was approved by shareholders on June 10, 2024, and is aimed at meeting the Nasdaq's $1.00 minimum bid price requirement for continued listing.
The reverse stock split will consolidate ten shares of existing common stock into one share, without altering the par value or the authorized number of shares. The company's stock will continue trading on the Nasdaq under the ticker symbol "FORD" but will begin on a split-adjusted basis from the market's opening on the effective date. Additionally, a new CUSIP number, 349862 409, will be assigned to the common stock following the split.
Equity awards, warrants, and convertible notes will be subject to proportional adjustments as per the terms of existing agreements. No fractional shares will be issued; instead, shareholders will receive rounded up whole shares to replace any fractional shares that would have resulted from the split. The action is intended to affect all stockholders uniformly and will not change their percentage interest in the company's equity, except for minor adjustments due to the rounding of fractional shares.
Forward Industries has clarified that registered stockholders with pre-split shares in electronic, book-entry form do not need to take any action to receive post-split shares. Those holding shares through a broker, bank, trust, or other nominees will see their positions automatically adjusted to reflect the reverse stock split.
The move to execute a reverse stock split follows the authorization by the company's board of directors and is part of efforts to comply with Nasdaq's listing requirements. However, there is no guarantee that the reverse stock split will enable the company to meet the minimum bid price requirement over a sufficient period to regain compliance.
Forward Industries, based in New York, continues to serve an international market with its product design, sourcing, and distribution services. This announcement is based on a press release statement from the company.
InvestingPro Insights
In light of Forward Industries' recent announcement of a 1-for-10 reverse stock split, investors are closely monitoring the performance and fundamental metrics of the company. According to InvestingPro data, Forward Industries (NASDAQ: FORD) is currently grappling with a challenging financial landscape. The company's market capitalization stands at a modest 4.42 million USD, reflecting the scale of its operations in the design and distribution sectors.
An analysis of the company's profitability reveals that Forward Industries has not been profitable over the last twelve months, with a negative P/E ratio of -1.48. This metric suggests that investors are concerned about the company's ability to generate earnings. Additionally, revenue has seen a decline of -10.04% over the last twelve months as of Q2 2024, indicating potential headwinds in sales and market demand.
One of the InvestingPro Tips highlights that Forward Industries' stock has taken a significant hit over the past six months, with a price total return of -33.61% during that period. The company's stock price has also fallen considerably over the last year, with a one-year price total return of -51.21%. These trends may be indicative of investor sentiment and market reactions to the company's operational performance and strategic decisions.
Despite these challenges, Forward Industries operates with a moderate level of debt, which could provide some flexibility in managing its financial obligations. Nevertheless, it's important to note that the company's short-term obligations currently exceed its liquid assets, which may raise concerns about its ability to meet immediate financial liabilities.
Investors considering Forward Industries as a potential investment opportunity can find additional insights and tips on InvestingPro, where there are currently 9 more InvestingPro Tips available. These could provide further context on the company's financial health and stock performance. For those interested in a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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