DENVER - SOBR Safe, Inc. (NASDAQ:SOBR), a company specializing in transdermal alcohol detection technology, has announced a reverse stock split of its common stock at a ratio of 1-for-110, set to take effect on October 2, 2024. This strategic move aims to increase the per-share market price of the company's stock to comply with Nasdaq's minimum bid price requirement for continued listing on The Nasdaq Capital Market.
The reverse stock split was authorized by SOBR Safe's board of directors and is within the range approved by the company's shareholders at the annual meeting on June 3, 2024. As a result of the reverse stock split, every 110 shares of SOBR Safe's issued and outstanding common stock will be automatically combined into one share. The company's stock will continue to trade under the ticker symbol "SOBR" with a new CUSIP number 833592 306.
Stockholders will not receive fractional shares in connection with the reverse stock split. Instead, fractional shares will be rounded up to the nearest whole number. The reverse stock split will also result in a proportionate adjustment of all outstanding common stock equivalent securities, including warrants and equity compensation awards.
Equiniti Trust Company, LLC will act as the exchange agent and transfer agent for the reverse stock split process. Stockholders holding shares in electronic book-entry form will not need to take any action to receive post-split shares. Those holding certificated shares will receive a transmittal letter from Equiniti with instructions on how to exchange their pre-split share certificates for a statement of ownership. Adjustments for stockholders owning shares through banks, brokers, or other nominees will be made automatically to reflect the reverse stock split.
Further details regarding the reverse stock split can be found in SOBR Safe's definitive proxy statement filed with the U.S. Securities and Exchange Commission on May 13, 2024.
This announcement is based on a press release statement from SOBR Safe, Inc.
In other recent news, SOBR Safe, Inc. has launched a campaign to promote its alcohol detection technology, aiming to reach over 45,000 behavioral health decision-makers and garner more than 4,000,000 views within a 12-month period. The company's technology, which detects the presence of alcohol through the skin, is targeted at markets including behavioral health, judicial, and consumer sectors. In other developments, SOBR Safe has been granted an extension by the Nasdaq Hearings Panel to meet the Nasdaq's listing requirements by October 23, 2024. The company has made significant strides in improving its financial position, securing approximately $2.8 million in gross proceeds through the exercise of outstanding warrants and debt conversion, which led to the elimination of $2.6 million in debt. In a recent Special Stockholder Meeting, shareholders approved the issuance of up to 20,638,326 shares of common stock upon the exercise of a warrant. Additionally, SOBR Safe has expanded its product portfolio by selling its SOBRcheck and SOBRsure devices to Lake Erie Interlock, Inc., marking an expansion of their alcohol detection technology services in Ohio. These recent developments are part of SOBR Safe's ongoing efforts to improve its financial health and continue its listing on the Nasdaq.
InvestingPro Insights
SOBR Safe's decision to implement a reverse stock split comes at a critical time for the company. According to InvestingPro data, SOBR's stock has experienced significant declines, with a 1-year price total return of -92.55% as of the latest available data. This aligns with the company's need to boost its share price to meet Nasdaq's minimum bid requirements.
Despite the challenging stock performance, there are some positive indicators. An InvestingPro Tip notes that SOBR Safe holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates this transition. Additionally, analysts anticipate sales growth in the current year, potentially offering a glimmer of hope for investors.
However, it's important to note that the company is not currently profitable, with a negative P/E ratio of -0.26 for the last twelve months as of Q2 2024. This underscores the importance of the company's strategic moves to maintain its Nasdaq listing and potentially attract new investors.
For those seeking a deeper understanding of SOBR Safe's financial position and prospects, InvestingPro offers 14 additional tips, providing a comprehensive analysis of the company's situation beyond what's covered in this article.
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