Nauticus Robotics (NASDAQ: KITT) stock plunged in pre-market trading Friday after the company announced a 1-for-36 reverse stock split.
Nauticus Robotics has announced a 1-for-36 reverse stock split of its common stock, effective after market hours on July 22, 2024. The move comes after the company received approval from its Board of Directors and shareholders at the annual meeting held on June 17, 2024.
The primary objective of the reverse stock split is to increase Nauticus Robotics’ share price to meet the minimum bid price requirements of The Nasdaq Capital Market. The move is also intended to enhance the stock’s appeal to institutional investors.
Details of the Reverse Stock Split
The company said the reverse split will consolidate every 36 existing shares into one new share for existing investors. The reverse split will consolidate current shareholders’ holdings without affecting the total value of their investment. It will round up fractional shares resulting from the split to the nearest whole share. Consequently, while shareholders will own fewer shares, the price per share will rise proportionally, maintaining the overall value of the investment.
In addition, Nauticus informed its shareholders that the Nasdaq exchange will temporarily halt trading of its common stock when the reverse split takes effect. It expects trading to resume under a new CUSIP number on the morning of July 23, 2024.
Moreover, a Texas-based marine robotics technology company informed shareholders with electronic shares that they do not need to take any action. However, the company’s transfer agent will send instructions to those holding certificated shares on how to proceed.
Nauticus Robotics develops advanced robotic systems for service, sales, and licensing in the commercial and defense sectors. The company’s technology reduces operational costs and environmental impact while improving data collection and analytics for maintaining subsea infrastructure.
The move comes amidst its efforts to commercialize new products and capitalize on customer interest in its innovative offerings. Nauticus emphasizes that it is implementing the reverse stock split as a strategic step to enhance its market position and attract a broader investor base.
Nauticus Robotics (NASDAQ: KITT) Stock Reaction
As of 08:25 a.m. (Eastern Time) Friday, KITT stock traded at $0.1015, marking a 21.25% decrease compared to the previous trading session.
