Cardiff Lexington Corporation executed a 1-for-75,000 reverse stock split of its outstanding common stock on January 9, 2024. This corporate action adjusted all outstanding shares of common stock and warrants to purchase common stock, with their respective exercise prices proportionately increased.
The conversion prices of outstanding convertible notes and certain series of preferred stock were also adjusted to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The total number of authorized shares of common stock did not change as a result of this split.
An amount equal to the decreased value of the common stock was reclassified from 'common stock' to 'additional paid-in capital' following the reverse stock split. This move impacts the company's capital structure and per-share metrics.
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