Infobird Co., (NASDAQ: IFBD) stock plunged following the announcement of an unforeseen delay in its scheduled reverse stock split.
Infobird, a leading provider of software-as-a-service (SaaS) solutions with a focus on artificial intelligence (AI), has announced the postponement of its planned reverse stock split to Monday, March 4, 2024. This decision comes as the company encounters unforeseen hurdles in obtaining regulatory clearance.
The company originally planned to make the reverse stock split effective after the market closed on February 26, and shareholders were expecting shares to trade on a split-adjusted basis beginning on Tuesday.
The company has not specified the regulatory challenges leading to the delay. Infobird’s common shares will now begin trading on a split-adjusted basis on the rescheduled date.
Last week, Infobird (IFBD) gained shareholder approval for a 1-for-8 share consolidation and a capital reduction and reorganization. The primary objective behind this initiative was to ensure compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its listing on Nasdaq.
The share consolidation plan will merge every eight ordinary shares valued at US$0.5 per share into one ordinary share with a par value of US$4.0.
Infobird (NASDAQ: IFBD) Stock Movement
IFBD stock plummeted 53.62% to close at $1.28 on Tuesday. The traders had exchanged hands with 54,892,349 (54.89 million) shares compared to the average daily trading volume of 1.39 million.
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