NEW YORK - Fluent, Inc. (NASDAQ: NASDAQ:FLNT), a prominent data-driven performance marketing firm, has announced a 1-for-6 reverse stock split, set to take effect after market close on Wednesday. The company's common stock will start trading on a split-adjusted basis when markets open on Friday, April 12, 2024.
The reverse stock split is a strategic move by Fluent to meet the Nasdaq Capital Market's minimum bid price requirement of $1.00 per share. Fluent has a deadline of April 29, 2024, to demonstrate compliance, which necessitates a closing bid price of at least $1.00 for ten consecutive business days. The company will be filing a Certificate of Amendment to its Certificate of Incorporation to formalize the reverse split.
Following the split, the number of issued and outstanding shares of Fluent's common stock will decrease from approximately 81.6 million to about 13.6 million. Proportionate adjustments will also be made to the number of shares available under the company's equity incentive plans and the exercise price for outstanding stock options.
The reverse stock split will be implemented uniformly across all shareholders, preserving each investor's percentage ownership and proportional voting power, except for minor changes due to fractional shares. Stockholders who might receive fractional shares will be rounded up to the nearest whole share instead.
Fluent's transfer agent, Continental Stock Transfer & Trust Company, will provide stockholders with instructions for exchanging their stock certificates or adjusting book-entry shares. Those holding shares through brokers, banks, or nominees will see their holdings automatically adjusted.
This corporate action is based on a press release statement.
InvestingPro Insights
In light of Fluent, Inc.'s (NASDAQ: FLNT) recent announcement of a reverse stock split, a closer look at the company's financials through InvestingPro provides additional context for investors. Despite the challenging market conditions, Fluent's valuation implies a strong free cash flow yield, which could be an indicator of the company's ability to generate cash and potentially weather financial storms.
Another noteworthy point is that Fluent is trading at a low revenue valuation multiple, according to InvestingPro. This metric suggests that the market may not be fully recognizing the company's revenue potential, which could present an opportunity for investors.
InvestingPro Data for Fluent, Inc. shows a market capitalization of $40.79M, and while the company has not been profitable over the last twelve months, analysts predict it will be profitable this year. This optimistic outlook is important for investors considering the reverse stock split's potential to maintain Nasdaq listing and improve stock marketability.
Investors should note that the stock has experienced significant volatility, with a price decrease of over 33% in the last three months. Despite this, Fluent's liquid assets exceed its short-term obligations, providing a cushion for operational needs.
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