ATHENS - C3IS INC. (Nasdaq: CISS), a dry bulk and crude oil transportation services company, has announced a reverse stock split to address compliance issues with Nasdaq's minimum bid price requirement. The one-for-one hundred (1-for-100) reverse stock split is set to take effect at the close of business on Wednesday, with the company's common stock trading on a split-adjusted basis from Thursday, April 12, 2024.
The reverse stock split will consolidate every one hundred shares of issued common stock into one share, maintaining the par value of $0.01 per share. This action will reduce the number of outstanding shares from about 195.3 million to approximately 1.953 million.
Additionally, the company's warrants and Series A Convertible Preferred Stock will be adjusted proportionately, affecting the exercise price and the number of shares issuable upon exercise. Adjustments to Class B and Class C Warrants will follow after a specified adjustment period.
No fractional shares will be issued post-split. Instead, shareholders who would hold a fraction of a share will receive a cash payment based on the closing price of C3IS's common stock on Nasdaq as of April 11, 2024, adjusted for the split. Beneficial holders with shares in book-entry form or through a bank, broker, or other nominee will not need to take action, as the changes will be reflected in their accounts from April 12, 2024.
The decision for a reverse stock split follows a notification from Nasdaq on August 24, 2023, that C3IS did not meet the continued listing standard requiring a minimum average closing share price of $1.00 over 30 consecutive trading days. A subsequent notice on February 21, 2024, granted the company an extension until August 19, 2024, to regain compliance.
However, the company's common stock price fell to $0.10 or less for ten consecutive trading days through March 14, 2024, leading to a Nasdaq determination to delist the stock. C3IS appealed the decision on March 18, 2024, with a hearing scheduled for May 14, 2024.
The company's board believes the reverse stock split will increase the market price of its common stock, thereby addressing the non-compliance issues with Nasdaq's listing standards. The information in this article is based on a press release statement from C3IS INC.
InvestingPro Insights
In light of C3IS INC.'s recent announcement of a reverse stock split, investors may find the following insights from InvestingPro valuable. The company holds a strong gross profit margin of 73.45% for the last twelve months as of Q1 2023, indicating efficient operations and a solid ability to generate earnings above the cost of goods sold. Additionally, C3IS INC. is trading at a low Price / Book multiple of 0.12, suggesting that the market may be undervaluing the company's net assets.
Despite the reverse stock split aimed at boosting the share price to meet Nasdaq's requirements, C3IS has experienced a significant decline in its stock price over various time frames. The one-week price total return as of early April 2024 is -10.83%, with a more drastic one-month price total return of -50.65%. This trend continues over three and six months, with the stock price falling by -90.15% and -88.68%, respectively.
InvestingPro Tips for C3IS INC. include the fact that the company holds more cash than debt on its balance sheet and does not pay a dividend to shareholders. These factors may influence investment decisions depending on an investor's strategy and preference for capital preservation or income generation.
For those seeking more detailed analysis and additional insights, there are 11 more InvestingPro Tips available for C3IS INC. at https://www.investing.com/pro/CISS. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable tips and more.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.