AUSTIN, TX - Volcon Inc. (NASDAQ:VLCN), the first all-electric, off-road powersports company, has declared a reverse stock split of its common stock, scheduled to take effect after market close on June 6, 2024. The stock will begin trading on a post-split basis on the Nasdaq Capital Market on Thursday, June 7, 2024, under the same ticker symbol "VLCN" but with a new CUSIP number.
In the reverse stock split, every 100 shares of Volcon's common stock will be consolidated into one share, without altering the nominal par value per share. This action will reduce the number of outstanding shares from approximately 33.3 million to around 0.33 million. However, the total number of authorized shares will remain unchanged at 250 million. Stockholders who would have received fractional shares will instead have their shares rounded up to the nearest whole number.
The reverse stock split also proportionately decreases the shares reserved for the company's equity compensation plan. Volcon, based in the Austin, Texas area, has been recognized as a pioneer in producing sustainable, high-quality electric vehicles for outdoor enthusiasts. The company's product lineup includes the Grunt motorcycle, the Grunt EVO, the Brat eBike, and the Stag UTV, all designed for silent and pollution-free off-road experiences.
This news report is based on a press release statement from Volcon Inc.
In other recent news, Volcon Inc., an electric vehicle manufacturer, has secured a private placement deal worth approximately $2.9 million with institutional investors, issuing senior non-convertible notes and warrants for purchasing about 10.1 million company shares. Aegis Capital Corp. served as the exclusive placement agent for this deal.
In its operational and financial results for the first quarter ending March 31, 2024, Volcon reported revenue of $1.03 million, maintaining the level seen in the last quarter of 2023. The Grunt EVO, an off-road motorcycle, contributed $0.3 million to the revenue, while the Brat, Volcon's entry into the eBike market, generated $0.5 million.
Operating expenses decreased to $3.7 million, but the net loss for the quarter was substantial, amounting to $26.0 million, largely due to a $19.8 million loss recognized for warrant liabilities.
Volcon also reported its annual financial results for the fiscal year ending December 31, 2023, delivering its first Stag utility terrain vehicle (UTV) to the Army Corp of Engineers. The firm reported fourth-quarter revenue of $1.1 million, but faced a net loss of $3.4 million. The adjusted EBITDA for the fourth quarter was a loss of $9.4 million.
These are recent developments in the company's ongoing operations.
InvestingPro Insights
As Volcon Inc. (NASDAQ:VLCN) navigates through its strategic reverse stock split, the financial landscape of the company is a key point of interest for investors. According to InvestingPro data, Volcon's market capitalization stands at a modest $4.19 million. The company's price/book ratio as of the last twelve months ending Q1 2024 is 1.11, indicating that the stock may be trading at a value close to its book value.
Despite the challenges highlighted by a significant revenue decline of 31.08% in the last twelve months as of Q1 2024, an InvestingPro Tip suggests that analysts anticipate sales growth in the current year. This could signal a potential turnaround for the company, aligning with the revenue of $1.03 million reported in Q1 2024, which remained steady from the previous quarter.
However, another InvestingPro Tip indicates that the company is quickly burning through cash, which is a critical factor to consider in light of the $26.0 million net loss reported in the first quarter. Additionally, the company's gross profit margin has been deeply negative at -277.16% for the same period, reflecting cost management and pricing challenges.
For investors seeking a comprehensive analysis of Volcon Inc., InvestingPro offers additional insights and metrics. There are 17 more InvestingPro Tips available for VLCN, which could provide a deeper understanding of the company's financial health and market position. To access these insights and benefit from the full range of analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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