ConnectM Technology Solutions, Inc. (OTC: CNTM) plans a reverse stock split with ratios between 1-for-5 to 1-for-50 to meet minimum bid price requirements and enhance investor access.
The Board seeks stockholder approval for the reverse split to align with the company's strategy and uplisting goals to a U.S. national securities exchange.
ConnectM's Chairman and CEO, Bhaskar Panigrahi, emphasizes the importance of the proposed reverse split in enhancing corporate visibility and shareholder value.
Purpose of Reverse Split
To support ConnectM's uplisting strategy, increase corporate visibility, and enhance shareholder value.
Flexible Ratio Range
The Board seeks approval for a 1-for-5 to 1-for-50 reverse split range to provide greater flexibility based on market conditions.
Effect on Stock Value
The reverse split will not change the overall value of stock; market price will increase proportionately with the reduced number of shares.
- The reverse split, if approved, will reclassify ConnectM's common stock at a ratio chosen by the Board within the approved range of 1-for-5 to 1-for-50.
- Stockholders' ownership interest will remain unchanged as the market price per share adjusts proportionally with the reduction in shares.
- The Company anticipates rounding up fractional shares to the nearest whole share after the split.
The proposed reverse split aligns with ConnectM Technology Solutions' strategic initiatives and focus on the energy and AI platform, aiming to increase visibility, liquidity, and shareholder value.