After stock split news emerged on Friday, shares of American Virtual Cloud Technologies Inc. hit $0.2170, down -27.25%. The stock added 6.80% to reach $0.30 at the end of the last trading session.
How has AVCT decided to split its stock?
In today’s press release, American Virtual (AVCT) announced that it will reverse stock split its issued and outstanding shares of common stock one for fifteen times (the “Reverse Stock Split”).
After an amendment is filed with the Delaware Secretary of State with the Company’s amended and restated certificate of incorporation (the “Charter”), the Reverse Stock Split will take effect on September 30, 2022 (the “Effective Time”), and when the market opens on October 3, 2022, the Company’s common stock will begin trading on a split-adjusted basis. A reverse stock split will result in American Virtual common stock trading under the symbol “AVCT” on the Nasdaq Capital Market. The New CUSIP number for American Virtual will be 030382204 following the reverse stock split.
AVCT’s stockholders voted to approve three alternative amendments to the Company’s Charter at its annual meeting held on May 24, 2022, as previously disclosed. The board of directors will determine the ratio of a reverse stock split, as well as the timing and implementation of such a Reverse Stock Split, at the Company’s annual meeting held on May 24, 2022. A reverse stock split of 1-for-15 was subsequently approved by the board of directors.
The Reverse Stock Split will automatically reclassify and convert every share of common stock issued and outstanding immediately before the Effective Time into a one-fifth (1/15) share of common stock. As a result of the Reverse Stock Split, all stockholders will be affected uniformly and their percentage interest in the Company’s equity will not change, except to the extent the Reverse Stock Split would result in a fractional share being owned by some stockholder.
There will be no fractional shares issued as a result of the Reverse Stock Split. Continental Stock Transfer and Trust Company will provide cash in lieu of fractional shares to shareholders who would otherwise be entitled to such fractional shares.
How will AVCT execute the split?
In the Reverse Stock Split, neither the par value nor the number of shares of common stock of American Virtual (AVCT) was changed. The terms of all outstanding warrants and preferred stock granting holders the right to buy, obtain, or convert into shares of AVCT common stock will be adjusted accordingly.
