AgEagle Aerial Systems Inc. (NYSE American: UAVS), a company specializing in aircraft manufacturing, announced a reverse stock split of its common shares. The reverse stock split was effective as of 5:00 p.m. Eastern Time on Monday and is expected to begin trading on a post-split basis today.
The Wichita, Kansas-based company, which was formerly known as EnerJex Resources, Inc., Millennium Plastics Corp, and Aurora Corp, stated that the reverse stock split was approved by the Board of Directors on October 3, 2024, and was enacted without shareholder approval pursuant to Nevada state law. The split was executed at a ratio of one new share for every fifty existing shares of common stock.
As a result of the reverse stock split, the total number of outstanding shares of common stock was reduced from approximately 39.7 million shares to about 850,409 shares, subject to rounding of fractional shares. No fractional shares will be issued; stockholders who would have received a fractional share will instead have their shares rounded up to the nearest whole number.
The company stated that the primary purpose of the reverse stock split is to meet the per-share price requirements of the NYSE American, ensuring compliance with the exchange's listing standards.
AgEagle's transfer agent, Equiniti Trust Company, will provide stockholders with instructions on the reverse stock split process. Stockholders holding shares in electronic form will see their holdings automatically adjusted. Those with shares in certificated form will receive new certificates.
The reverse stock split does not change the par value of the company's common stock or alter any voting rights or other terms. The exercise price and number of shares issuable under outstanding stock options and warrants, as well as the number of shares authorized for issuance under the company’s equity incentive plans, will be proportionally adjusted.
The company's common stock will continue trading under the ticker symbol "UAVS," with a new CUSIP number of 00848K 309 following the reverse stock split. This report is based on information provided in the company's SEC filing.
In other recent news, AgEagle Aerial Systems has undergone several significant developments. The company announced a reverse stock split, reducing the number of outstanding common shares from approximately 39.7 million to around 850,409.
This move is aimed to meet the NYSE American's per share price requirements. In terms of financial operations, AgEagle announced a public offering expected to generate approximately $6.5 million. They also issued new preferred shares and warrants to Alpha Capital Anstalt, valued at $500,000, as part of its capital-raising efforts.
AgEagle Aerial Systems demonstrated commitment to advancing unmanned aerial systems technology by participating in the NATO-co-hosted REPMUS 2024 Exercise and a Defense UAS integration test. The company also expanded an investment agreement with Alpha Capital Anstalt, enhancing its financial flexibility.
In governance news, all five director nominees were elected to the board at AgEagle's 2024 Annual Meeting of Shareholders, and WithumSmith+Brown, PC was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These are recent developments in AgEagle Aerial Systems' ongoing efforts to build new customer relationships and differentiate itself in the defense and security market.
InvestingPro Insights
AgEagle Aerial Systems' recent reverse stock split comes amid challenging financial circumstances, as revealed by InvestingPro data. The company's market capitalization stands at a modest $44.38 million, reflecting its small-cap status. This move to consolidate shares aligns with two critical InvestingPro Tips: the company "operates with a significant debt burden" and is "quickly burning through cash." These factors likely contributed to the need for the reverse split to maintain NYSE American listing compliance.
The company's financial health appears precarious, with a negative P/E ratio of -0.07 and a Price to Book ratio of 0.18, suggesting the market values the company below its book value. This undervaluation is further emphasized by the InvestingPro Tip indicating that the stock is "trading at a low Price / Book multiple."
Investors should note that AgEagle's stock has experienced significant volatility, with the price falling 96.82% over the past year. This aligns with the InvestingPro Tip that the "stock price movements are quite volatile." The company's revenue of $13.69 million for the last twelve months, coupled with a concerning revenue growth of -20.85%, underscores the challenges it faces in its aircraft manufacturing business.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for AgEagle Aerial Systems, providing deeper insights into the company's financial situation and market performance.
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