Sunworks Inc. on Aug. 29 said it will implement a 1-for-7 reverse stock split of its outstanding common stock to gain compliance with Nasdaq's listing requirements.
As a result, every seven shares of the company's common stock will be automatically reclassified and converted into one issued and outstanding common share, without any change in par value per share. Stockholders will be issued one whole common share in exchange for any fractional interest.
The transaction will reduce the number of issued and outstanding common shares from 32,660,496 to 4,665,786, plus any shares to be issued in exchange for fractional interests. Authorized shares will remain at 200 million.
Starting Aug. 30, the company's common stock will trade on a reverse stock split adjusted basis on the Nasdaq Capital Market under its current trading symbol SUNW.
Sunworks Inc.'s shareholders previously approved an amendment to effect a reverse stock split of the company's issued and outstanding common stock at a ratio between 1-for-3 and 1-for-10.
Continental Stock Transfer & Trust is acting as the exchange agent for the reverse stock split.
