PHOENIX-based SinglePoint Inc. (Cboe BZX Exchange: SING) has announced a significant change to its stock structure, according to a recent 8-K filing with the Securities and Exchange Commission. On Wednesday, the company executed a 1-for-100 reverse stock split, effectively consolidating every 100 shares of existing common stock into one share.
This corporate action, which took effect at 12:01 a.m. Eastern Time today, also includes a proportionate reduction in the authorized shares of common stock. The reverse split was conducted under Nevada law, which allows such a move without stockholder approval under certain conditions.
In addition to the reverse split, the company's board of directors has authorized special treatment for certain shareholders to ensure they maintain at least 100 shares post-split, thus preserving their status as round lot holders. This may result in the issuance of additional common stock to round up fractional shares and accommodate the special treatment.
The company expects that the reverse stock split will result in an increase in the number of shares issued to its stockholders of record due to these adjustments. The newly structured common stock began trading on the BZX Exchange on a post-split basis as of the opening of business today.
Furthermore, the company has also filed an amendment to its Articles of Incorporation to set the number of authorized shares of common stock at 6 billion. The filing indicates that the majority holders of the company's Class A Convertible Preferred Stock will retain voting control over all stockholder matters.
The company's transfer agent, VStock Transfer, LLC, will provide stockholders with instructions on exchanging their stock certificates to reflect the new stock structure.
This news is based on a press release statement.
In other recent news, SinglePoint Inc. is grappling with potential delisting from the Cboe BZX Exchange after failing to meet the exchange's minimum listing requirements, as per a Deficiency Notification received by the company. The nonstore retailer has been proactive in addressing these deficiencies, having filed its Form 10-K and planning to file its Form 10-Q, while also requesting a hearing with the exchange's Hearings Panel to discuss the situation further.
In addition to this, SinglePoint has recently resolved an outstanding debt with Bucktown Capital, LLC, by entering into an Exchange Agreement. The agreement allowed the company to exchange a promissory note for over a million shares of its common stock, effectively settling the original note's balance.
InvestingPro Insights
As SinglePoint Inc. navigates its recent reverse stock split, investors are observing the company's financial health and market performance with heightened interest. According to InvestingPro data, SinglePoint has a market capitalization of just $2.04 million, reflecting the challenges it faces in the market. Despite a notable 20.81% revenue growth over the last twelve months as of Q4 2023, the company's quarterly revenue has seen a sharp decline of 39.24% in Q4 2023. This juxtaposition of annual growth against a quarterly downturn may suggest volatility in the company's revenue streams.
The company's stock price has experienced significant turbulence, with a 28.5% decrease in the total return over the past week and a staggering 99.69% decline over the past year, signaling a period of intense pressure on the stock's value. These figures align with InvestingPro Tips indicating that SinglePoint's stock has faced substantial hits over various time frames, including the last week, month, three months, six months, and year.
InvestingPro Tips also highlight that SinglePoint operates with a significant debt burden and may have trouble making interest payments on its debt, which is critical for investors to consider when evaluating the company's long-term viability. With the stock trading at a low revenue valuation multiple and the company not being profitable over the last twelve months, potential investors should weigh these factors carefully. For those looking to delve deeper into SinglePoint's financials and future prospects, InvestingPro offers a wealth of additional tips and insights, available at https://www.investing.com/pro/SING.
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