ClearOne, Inc. announced its intention to effect a 1-for-15 reverse stock split of its issued and outstanding common stock, subject to stockholder approval. The company's Board of Directors approved the 1-for-15 ratio, with stockholders set to vote on the proposal at a special meeting on May 30, 2025. The reverse stock split is primarily intended to increase the per share market price of its common stock to regain compliance with Nasdaq's minimum bid price requirement for continued listing.
If approved, the reverse stock split will become effective at 5:00 p.m. Eastern time on June 2, 2025, with trading on a reverse stock split adjusted basis commencing at market open on June 3, 2025. As a result, every 15 shares of common stock will be automatically combined into one new share. The company's common stock will continue to trade under the symbol 'CLRO' but with a new CUSIP number.
The reverse stock split will reduce the number of issued and outstanding shares of common stock from approximately 26.0 million to approximately 1.7 million. The par value per share will remain unchanged at $0.001. Proportional adjustments will be made to outstanding stock options and warrants, and shares reserved for equity incentive plans. The reverse stock split will not alter stockholders' percentage ownership interest, except for fractional shares.
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