Breaking News: 22nd Century Implements 1-for-135 Reverse Stock Split – What Investors Need to Know!
Description:
Mocksville, North Carolina–(Newsfile Corp. – December 13, 2024) – 22nd Century Group, Inc. (NASDAQ: XXII), a tobacco products company that is leading the fight against nicotine and believes smokers should have a choice about their nicotine consumption, today announced that it will effect a reverse stock split of its outstanding shares of common stock, par value $0.00001 per share (the “Common Stock”), at a ratio of 1-for-135, to be effective as of December 17, 2024. The reverse stock split is intended for the Company to regain compliance with the minimum bid price requirement of $1.00 per share of common stock for continued listing on Nasdaq.
What Investors Need to Know:
Investors in 22nd Century Group, Inc. (NASDAQ: XXII) need to be aware of the upcoming implementation of a 1-for-135 reverse stock split. This decision was made in order for the company to meet the minimum bid price requirement of $1.00 per share to remain listed on Nasdaq.
As a result of the reverse stock split, shareholders will receive one share for every 135 shares they currently own. While this may initially cause a reduction in the number of shares held, the overall value of the investment remains the same, as the price of the individual shares will increase proportionally to compensate for the decrease in quantity.
It is important for investors to understand that a reverse stock split is typically done to increase the stock price and avoid delisting from major exchanges. While the immediate impact may be a change in the number of shares held, the fundamental value of the investment remains unchanged.
How This Will Affect Me:
As an investor in 22nd Century Group, Inc. (NASDAQ: XXII), the reverse stock split will result in a consolidation of shares but will not impact the overall value of the investment. It is important to stay updated with the company’s financial updates and ensure compliance with Nasdaq listing requirements.
How This Will Affect the World:
The implementation of a reverse stock split by 22nd Century Group, Inc. reflects the company’s commitment to maintaining compliance with regulatory standards and ensuring transparency in its financial operations. This move may influence other companies in the industry to take similar actions to enhance shareholder value and strengthen their position in the market.
Conclusion:
Overall, the reverse stock split announced by 22nd Century Group, Inc. is a strategic decision aimed at meeting Nasdaq listing requirements and improving investor confidence. While the immediate impact may involve a consolidation of shares, the fundamental value of the investment remains intact. Investors should stay informed about the company’s developments and continue to monitor their investment strategy accordingly.
