Kaival Splits Stock for NASDAQ Listing
Kaival Brands, the exclusive global distributor of all products manufactured by Bidi Vapor, has implemented a 1-for-12 reverse split of its common stock, effective prior to the opening of the market on July 20, 2021. The reverse stock split was implemented by the company in support of its application to list on the NASDAQ Capital Market.
As a result of the reverse split at the 1-for-12 ratio, every 12 shares will be exchanged for one share of the common stock.
“We are excited for the new phase of Kaival’s capital markets development as we progress to listing on the NASDAQ,” said Niraj Patel, CEO of Kaival Brands, in a statement.
“Our board carefully considered the decision to effect the reverse split of our shares, which is critical for us to list on NASDAQ based on our current stock price. A reverse split is designed as an economically neutral, mathematical event that does not affect the intrinsic value of the company. While many companies execute reverse splits to avoid being delisted, our reverse split is in fact being done for just the opposite reason: to become qualified to list on the NASDAQ, which we believe will have many benefits for our company and shareholders.”
The reverse split is intended to increase the per share stock price of the company’s common stock in order to meet NASDAQ’s requirement that the company’s common stock be $4 or higher as of the listing date. Prior to listing its common stock on NASDAQ, the company’s application must be approved.
The company does not intend to issue fractional shares in connection with the reverse stock split. In order to avoid fractional shares of common stock, the number of shares issued to each stockholder will be rounded up to the nearest whole number in the event a stockholder would be entitled to receive less than one share of common stock as a result of the split. The reverse split will not affect any holder of the company’s common stock’s proportionate voting power, and all shares of common stock will remain fully paid and nonassessable.
