SEATTLE - Banzai International, Inc. (NASDAQ: BNZI), a prominent marketing technology company, has implemented a one-for-fifty reverse stock split of its Class A common stock as of today, before market opening. This strategic move aims to ensure the company's compliance with Nasdaq's minimum average closing share price requirement for continued listing on the Nasdaq Capital Market.
The reverse stock split consolidates every fifty shares of Banzai's issued and outstanding common stock into a single share, maintaining the same par value per share. Trading under the ticker "BNZI," the stock will now have a new CUSIP Number, 06682J 308, and the total count of issued and outstanding shares will adjust to 916,558.
Designed to affect all Class A common stock uniformly, the split will not alter shareholders' percentage interest in the company, except for adjustments due to fractional shares. These fractional shares, rather than being issued, will be rounded up to the nearest whole share. The change also impacts the number of shares available under Banzai's stock options and warrants, adjusting the exercise prices and shares issuable accordingly.
Shareholders holding physical share certificates will be contacted by Continental Stock Transfer & Trust Company, Banzai's transfer agent, with instructions on the exchange process. For further inquiries, shareholders may reach out to the transfer agent directly.
Banzai, known for its marketing and sales solutions, serves a diverse clientele including Square, Hewlett Packard Enterprise (NYSE:HPE), and Thermo Fisher Scientific (NYSE:TMO). The company's mission is to empower businesses of all sizes to engage and measure customer interactions more effectively.
This announcement, based on a press release statement, contains forward-looking statements regarding Banzai's future operations and performance. These statements are subject to various risks and uncertainties, and actual results may differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today.
In other recent news, Banzai International has announced significant developments. The company reported a substantial increase in its customer base, adding 147 customers in August, bringing the total number of customers to 1,434 for the year. Banzai International has also executed a reverse stock split of its Class A common stock, reducing the total number of issued and outstanding shares to 916,558.
Changes in the board composition were seen with the resignation of board member, Mr. Bill Bryant, and the appointment of Kent Schofield, a former Goldman Sachs executive. The company is facing potential delisting from Nasdaq due to non-compliance with the minimum Market Value of Listed Securities requirement and has expressed its intention to request a hearing before The Nasdaq Hearings Panel.
Ascendiant Capital has initiated coverage on Banzai International with a Buy rating. The company also plans a public stock offering to raise approximately $2.5 million. These are recent developments that investors should note.
InvestingPro Insights
Banzai International, Inc. (NASDAQ: BNZI) has made a significant structural change to its stock with the recent reverse split. To provide additional context to this development, we turn to real-time data and insights from InvestingPro. The company's market capitalization, post-adjustment, stands at $131.37 million, reflecting the immediate impact of the consolidation.
InvestingPro Tips indicate that BNZI's stock price has been moving contrary to market trends and has suffered a considerable decline over various time frames, including a steep 39.13% drop over the last month and a dramatic 99.34% fall over the past year. These trends are important for investors to consider, especially when evaluating the company's strategic moves and their potential to influence stock performance.
Furthermore, the financial health of Banzai seems to be under scrutiny, as the company's short-term obligations currently exceed its liquid assets, and analysts are not expecting profitability within this fiscal year. With a negative P/E ratio of -8.07 for the last twelve months as of Q2 2024, the company's earnings perspective is challenging. It's also worth noting that Banzai does not pay a dividend, which may influence investment decisions for income-focused shareholders.
For investors looking for deeper analysis and additional insights, there are more InvestingPro Tips available, which can be explored to gain a comprehensive understanding of BNZI's financial position and market performance.
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