Markforged approves 1-for-10 reverse stock split

The Board of Directors of Markforged has approved a 1-for-10 reverse stock split of its common stock, effective September 19, 2024

Markforged has made a necessary move to address its ongoing issues on the U.S. stock exchange. Due to the persistently low stock price, Markforged has approved a reverse stock split. The company also announced a corresponding proportional reduction in the number of common shares it is authorized to issue.

It is expected that Markforged’s common stock will begin trading on the New York Stock Exchange on a split-adjusted basis starting on the trading day of September 19, 2024.

Markforged is implementing the reverse stock split in response to a notice received last year of non-compliance with the New York Stock Exchange (NYSE) regulations. The notice concerned Rule 802.01C, which requires listed companies to achieve a minimum average closing price of $1.00 per share over 30 consecutive trading days. Markforged, which announced that it would consider a reverse stock split in November of last year, has been unable to raise its stock price above the $1.00 threshold. Currently (as of September 10, 2024), the shares are valued at $0.20 each.

The 1-for-10 reverse stock split will automatically convert ten (10) of the company’s existing common shares into one (1) new common share. Following the reverse stock split, the number of issued common shares will be proportionally reduced from approximately 203 million to approximately 20.3 million, subject to adjustments to account for any fractional shares that shareholders would otherwise receive as a result of the reverse stock split.

In connection with the reverse stock split, the number of authorized common shares will be reduced from 1 billion to 100 million.

Source: www.markforged.com