VANCOUVER - Siyata Mobile Inc. (NASDAQ:SYTA), a global provider of Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems, with a market capitalization of just $2.99 million and notable revenue growth of 41.59% in the last twelve months, will implement a 1-for-10 reverse stock split of its common shares. According to InvestingPro data, the company trades at relatively low valuation multiples despite its growth. The change is set to take effect at the start of trading on December 27, 2024, with the goal of meeting Nasdaq's minimum bid price requirement.
The reverse stock split will consolidate ten current shares into one new share of common stock. This action will not alter the par value of the shares nor the authorized number of common or preferred stock. Adjustments will also be made to the company's outstanding stock options, warrants, and other convertible securities to reflect the consolidation. InvestingPro analysis reveals the company faces significant financial challenges, with negative EBITDA of -$12.84 million and substantial debt burden, factors that may have contributed to the need for this corporate action.
No fractional shares will be issued; instead, shareholders will receive a rounded-up whole share for any fractional holdings. The company's transfer agent, Computershare, will act as the exchange agent for the reverse stock split. Shareholders with physical stock certificates will need to exchange them, while those holding shares electronically or through a nominee will see their holdings automatically adjusted. Get access to 13 additional key insights about Siyata Mobile's financial health and market position through InvestingPro.
The reverse stock split is primarily aimed at ensuring compliance with the Nasdaq's minimum bid price rule, although there is no assurance that this will be achieved. With a current ratio of 1.03 and negative free cash flow, the company faces ongoing financial challenges. Siyata's common shares will continue to trade under the ticker symbol "SYTA" with a new CUSIP number assigned post-split.
This announcement is based on a press release statement from Siyata Mobile Inc.
In other recent news, Siyata Mobile Inc. has announced the launch of its next-generation SD7 Ultra series 5G mission-critical push-to-talk (MCPTT) cellular radio handsets. These devices, now available on T-Mobile's 5G network, are designed to enhance radio communications for public safety officials across the United States. Siyata's CEO, Marc Seelenfreund, expressed confidence in the potential of these devices to improve operational efficiency and response times during emergencies.
The SD7 Ultra series, which includes the SD7 Ultra-5G and SD7 Ultra S-5G models, offers superior sound quality and durability. The devices promise the benefits of 5G connectivity, with the SD7 Ultra S-5G model featuring a 4" LCD front touchscreen. These recent developments underscore Siyata's commitment to providing robust communication solutions for first responders.
This information is based on a press release statement from Siyata Mobile Inc., and it should be noted that forward-looking statements are subject to risks and uncertainties.
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