CHERRY HILL, N.J. - The Real Good Food Company, Inc. (NASDAQ: RGF), a micro-cap food company with a market value of $8.91 million known for its health and wellness frozen and refrigerated foods, has announced a 12-to-1 reverse stock split of its Class A and Class B common stock, slated to take effect after market close on January 3, 2025. The announcement comes as the stock trades at $0.32, following a challenging year that saw an 83% decline in share price. This corporate action was approved by stockholders on December 20, 2024, with the primary aim of complying with Nasdaq's minimum bid price requirement.
Starting January 6, 2025, the company's Class A common stock will trade on a split-adjusted basis under the same ticker symbol "RGF" with a new CUSIP number 75601G 307. The reverse stock split will consolidate every 12 shares of issued and outstanding common stock into one share. The move is designed to affect all stockholders uniformly, maintaining their proportional ownership in the company, barring minor adjustments for rounding fractional shares up to the nearest whole share.
Stockholders who hold their 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. Equinity Trust Company LLC has been appointed as the exchange agent for this process.
Real Good Foods, with a product range that includes breakfast, lunch, dinner, and snacks, is available in over 16,000 stores nationwide and also offers direct-to-consumer options. The company prides itself on providing nutritious foods that are low in sugar and carbohydrates, and high in protein. According to InvestingPro analysis, the company's financial health score stands at 1.14, indicating significant operational challenges despite its broad retail presence.
The press release also contains forward-looking statements regarding the company's plans to regain compliance with Nasdaq's listing rules. However, these statements are subject to risks and uncertainties that could affect the company's ability to achieve these objectives. While the stock has shown some recent momentum with a 9.5% gain over the past week, InvestingPro data reveals multiple additional factors affecting the company's outlook, with 8 more key insights available to subscribers.
This news is based on a press release statement from The Real Good Food Company, Inc. and does not include any promotional language or subjective assessment. The company's future plans are presented as stated in the press release without any endorsement of their potential success.
In other recent news, The Real Good Food Company has been navigating significant changes. The company received stockholder approval for a reverse stock split and the issuance of additional shares. It also announced the restatement of its financial statements for 2022 and the quarterly periods of 2023 due to errors in revenue recognition. Furthermore, the company has made significant corporate governance changes, including the issuance of preferred stock and amendments to its Certificate of Incorporation.
The Real Good Food Company is also facing potential delisting from the Nasdaq Global Market due to non-compliance with the exchange's listing rules. To address this, the company has requested a hearing to seek an extension to regain compliance. Additionally, the company has increased its borrowing capacity by amending its credit agreement with PMC Financial Services Group, raising the revolving credit facility from $42 million to $46 million.
On a positive note, Real Good Food has expanded its distribution in 4,000 Walmart (NYSE:WMT) stores nationwide with the introduction of its new Seasoned Chicken Breast Chunks. These are the recent developments impacting The Real Good Food Company.
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