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Vision Marine Technologies Announces Reverse Stock Split, Warrant Exchange and Receives Nasdaq Staff Determination Letter Regarding Non-Compliance with Minimum Bid Price Requirement
MONTREAL, QC / ACCESSWIRE / August 20, 2024 / Vision Marine Technologies, Inc. (NASDAQ:VMAR) ("Vision Marine" or the "Company"), a pioneer in electric marine
About this update from Vision Marine Technologies Inc.
[{"type":"text","content":"MONTREAL, QC / ACCESSWIRE / August 20, 2024 / Vision Marine Technologies, Inc. (NASDAQ:VMAR) (\"Vision Marine\" or the \"Company\"), a pioneer in electric marine propulsion, today announced that its Board of Directors (the \"Board\") has approved a 15-for-1 reverse stock split of the Company's common shares. The reverse stock split is expected to become effective when the market opens on August 22, 2024 (the \"Effective Date\"). Upon the Effective Date, the Company's common shares will begin trading on a split-adjusted basis under the existing trading symbol \"VMAR.\" The new CUSIP number for the Company's common shares following the reverse stock split will be 92840Q103. The primary goal of the reverse stock split is to increase the per-share market price of the Company's common shares to regain compliance with the minimum $1.00 bid price per share requirement of Nasdaq Listing Rule 5550(a)(2). This move follows the Company's receipt of a staff determination letter (the \"Determination Letter\") from the Listing Qualifications Department of The Nasdaq Stock Market LLC (\"Nasdaq\") on August 15, 2024, which indicated that the Company had not regained compliance with the Bid Price Requirement by the deadline of August 14, 2024.As outlined in the form 6-K filed with the Securities and Exchange Commission, Vision Marine received a deficiency letter from Nasdaq on February 16, 2024, notifying the Company that its common shares had fallen below the minimum $1.00 per share requirement for the preceding 30 consecutive business days. Despite being granted an initial 180-calendar-day period to regain compliance, the Company was unable to achieve the required bid price by the deadline, leading to the issuance of the Determination Letter.In addition to addressing the bid price issue, the reverse stock split is intended to align the Company's capital structure with Nasdaq's requirements. As a result of the reverse stock split, every fifteen common shares of the Company issued and outstanding will be automatically consolidated into one common share. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company's outstanding equity awards, as well as to the number of shares issuable under the Company's equity incentive plans. The common shares issued pursuant to the reverse stock split will rema...