Orion Energy Systems, Inc. announced a 1-for-10 reverse stock split of the Company's common stock.
The reverse stock split is intended to increase the bid price of Orion's common stock to comply with the minimum bid price requirement for listing on The Nasdaq Capital Market.
The total number of authorized shares of common stock will be reduced from 200,000,000 to 20,000,000 after the reverse stock split.
Purpose of Reverse Stock Split
To increase the bid price of Orion's common stock to maintain listing compliance.
Impact on Shareholders
Shareholders will receive split-adjusted shares or cash payments for fractional shares.
Reduction in Outstanding Shares
The number of shares issued and outstanding will decrease from 35.2 million to approximately 3.5 million.
- The reverse stock split will bring the bid price of Orion's common stock in line with the listing requirements of The Nasdaq Capital Market, ensuring continued trading.
- Shareholders will experience a reduction in the total number of outstanding shares, which may impact trading volume and liquidity in the short term.
The approval of the 1-for-10 reverse stock split by Orion Energy Systems, Inc. aims to strengthen the Company's position and compliance with listing requirements, signaling a strategic move to enhance shareholder value and market standing.