DENVER - Oblong, Inc. (NASDAQ:OBLG), known for its multi-stream collaboration solutions, has announced a reverse stock split of its common stock at a ratio of 1-for-40, effective after market close on Thursday. The move, approved by shareholders and the board, aims to boost its per-share trading value to comply with Nasdaq's listing requirements.
The company's stock will start trading on a split-adjusted basis on the Nasdaq Capital Market under the same ticker symbol, OBLG, from Monday. This adjustment will not change the proportionate equity interests of shareholders, except for the elimination of fractional shares, which will be rounded up to the nearest whole share.
The reverse stock split will reduce Oblong's outstanding common stock from approximately 28.24 million shares to around 710,000 shares. It will also proportionately adjust the exercise price and number of shares issuable upon the conversion of options, warrants, and preferred stock.
Stockholders with shares in book-entry form or through brokerage accounts do not need to take action. Those with certificated shares will receive instructions from the transfer agent, Equiniti Trust Company, on exchanging their certificates.
The company, which focuses on enhancing workplace productivity through its flagship product Mezzanine™, has been assigned a new CUSIP number of 674434303 in connection with the reverse stock split.
Investors should note that while the company has expressed intentions to satisfy Nasdaq's continued listing standards through this reverse stock split, forward-looking statements involve risks and uncertainties. The company's future results may differ from current expectations and projections.
This report is based on a press release statement, and no further company endorsement or promotional content has been included.
In other recent news, Oblong, Inc. has announced its plan to acquire Dwellwell Analytics, an AI-driven property management technology firm. The proposed merger, pending regulatory approval and other customary closing conditions, would result in Dwellwell's securityholders owning a 67% majority stake in the merged entity, while Oblong's equity holders would retain 33%. This move is expected to leverage Dwellwell's patented technologies and AI platform, which monitors residential properties to preemptively identify maintenance needs. The merger is part of Oblong's strategic evaluation to enhance its offerings in the real estate sector. Oblong's CEO, Pete Holst, and Dwellwell's CEO, Dan Simpkins, have both expressed confidence in the potential value that the merger could bring to shareholders. No guarantee has been given that the merger will proceed as outlined or at all, and investors are advised to read relevant documents filed with the SEC for further information. These recent developments mark a significant potential shift for both companies.
InvestingPro Insights
Oblong, Inc. (NASDAQ:OBLG) has recently undergone a reverse stock split to maintain compliance with Nasdaq's listing requirements. As investors evaluate the implications of this corporate action, it is important to consider the company's financial health and market performance. Based on the latest data from InvestingPro, Oblong's market capitalization stands at a modest $3.36 million. This figure is a reflection of the company's current valuation in the market and is a critical metric for investors to monitor, especially in the context of the reverse stock split.
InvestingPro Tips suggest that Oblong holds more cash than debt on its balance sheet, which can be a sign of financial stability, especially for a small-cap company. This is a key consideration for investors assessing the company's ability to navigate market fluctuations post-reverse stock split. Furthermore, the company's stock has experienced significant price volatility, which could indicate higher risk for investors looking for stable returns.
On the financial performance front, Oblong's revenue for the last twelve months as of Q2 2024 was reported at $3.05 million, with a concerning revenue decline of 33.7%. This contraction could be indicative of broader challenges within the company or its market. Additionally, the gross profit margin during the same period was 20.64%, which aligns with the InvestingPro Tip highlighting weak gross profit margins. Investors should consider these financial metrics when making decisions, as they provide insight into the company's operational efficiency and profitability potential.
For those seeking a deeper analysis, InvestingPro offers additional tips on Oblong, Inc., which can be found at https://www.investing.com/pro/OBLG. These tips can provide investors with a more comprehensive understanding of the company's financial position and market performance.
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