In a recent filing with the Securities and Exchange Commission, Verb Technology Company, Inc. (NASDAQ:VERB) has announced a reverse stock split of its common stock at a ratio of 1-for-200. This decision was made following the authorization granted by the company's stockholders during the annual meeting held on September 26, 2024.
The reverse stock split, which was approved by the Board of Directors on the same day as the stockholder meeting, is aimed at consolidating the number of existing shares of common stock into fewer shares. A Certificate of Amendment to the Articles of Incorporation was filed with the Secretary of State of Nevada on September 27, 2024, to formalize the reverse split.
During the annual meeting, which was conducted via live webcast, four directors were elected to serve until the 2025 annual meeting. The directors are Rory J. Cutaia, James P. Geiskopf, Kenneth S. Cragun, and Edmund C. Moy. Additionally, the stockholders ratified the appointment of Grassi & CO., CPAs, P.C. as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
The final vote count for the reverse stock split showed a majority in favor, with 34,387,270 votes for, 24,966,253 against, and 2,355,698 abstained. The ratification of Grassi & CO. as the company's independent auditor received 53,979,614 votes for, 6,059,162 against, and 1,670,445 abstained.
In other recent news, Verb Technology has withdrawn its previously filed Form 1-A offering statement, indicating a cancellation of its planned securities offering. The decision was made internally based on the company's assessment of its financial position and capital requirements. In a show of financial health, Verb Technology reported a significant improvement in its audited financial statements for 2023, with cash and equivalents standing at approximately $14.2 million and notes payable around $1.2 million.
However, the company is facing potential delisting from the Nasdaq Stock Market due to its share price falling below the minimum bid price requirement. To address this, Verb Technology has requested a hearing before the Nasdaq Hearings Panel and proposed a reverse stock split.
In terms of partnerships, Verb Technology recently teamed up with BeautyStat for a live shopping event on TikTok, reflecting their strategy of expanding interactive sales applications.
Additionally, the company entered into a significant partnership with TikTok Shop, which is expected to generate revenue through service fees and a percentage of monthly revenue from TikTok stores established via their platform.
InvestingPro Insights
The recent announcement of Verb Technology Company's reverse stock split comes amid challenging financial circumstances for the company. According to InvestingPro data, VERB's stock has experienced significant declines, with a 1-year price total return of -93.59% as of the latest available data. This aligns with two InvestingPro Tips: "Stock has taken a big hit over the last week" and "Price has fallen significantly over the last year."
The company's financial health appears precarious, with an operating income margin of -11,788.24% in the last twelve months as of Q2 2024, indicating substantial losses relative to revenue. This is further supported by the InvestingPro Tip that VERB is "Quickly burning through cash" and "Not profitable over the last twelve months."
Despite these challenges, VERB's price-to-book ratio stands at 0.44, suggesting the stock might be undervalued relative to its book value. This is reflected in the InvestingPro Tip noting that VERB is "Trading at a low Price / Book multiple."
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for VERB, providing a deeper understanding of the company's financial position and market performance.
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