Kwesst Micro Systems To Conduct 1-For-70 Reverse Split, Resulting In Just 778,806 Shares Post-Consolidation
Kwesst Micro Systems (TSXV: KWE) is evidently undertaking whatever it takes to potentially get listed on a major US exchange. The company last night announced that it will be conducting a share consolidation at an eye-popping ratio of one post-consolidation share for every seventy pre-consolidation shares, or 1 for 70.
The reverse split is explicitly conducted as a means of meeting requirements to list on the Nasdaq Capital Market, as per the company. Given the minimum bid price of $4.00 per share required to list, the company was as a result forced to conduct the massive share consolidation.
The consolidation itself is sure to make the firms shares rather volatile on a post-consolidation basis. With 54.5 million shares currently outstanding, the company will have just 778,806 shares outstanding before fractional share adjustments are considered. Fractional shares are to be rounded to the nearest whole number, with no fractional shares to be issued.
Any outstanding convertible units will also be adjusted to reflect the consolidation, with currently trading warrants to be converted at time of exercise.
The consolidation is expected to be completed this evening after market close.
Kwesst Micro Systems last traded at $0.09 on the TSX Venture, with a market capitalization of $4.91 million.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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