ST. LOUIS - Benson Hill, Inc. (NYSE:BHIL), a seed innovation firm, announced today that it has implemented a reverse stock split of its common stock at a 1-for-35 ratio, effective as of market close. This strategic move aims to elevate the company's share price to comply with the New York Stock Exchange's minimum price criteria.
The reverse stock split was ratified by shareholders earlier today and is expected to be reflected in the market at the opening of trading on Friday, July 19, 2024. The company's shares will continue to be listed on the NYSE under the ticker BHIL, albeit with a new CUSIP number. Similarly, publicly traded warrants will persist over-the-counter with their existing CUSIP number.
This corporate action will consolidate every thirty-five shares of existing common stock into one share, reducing the total number of outstanding shares from approximately 213 million to around 6 million.
Despite the significant reduction in shares, the reverse stock split will not alter the number of authorized shares, the terms of the common stock, or the relative voting power of stockholders. Moreover, there will be no change in the company's business operations or its reporting obligations to the Securities and Exchange Commission.
Stockholders will not receive fractional shares as a result of the reverse stock split. Instead, they will be compensated in cash for the fractional share value based on the closing price of the common stock on July 18, 2024. The number of shares issuable upon exercise or vesting of outstanding equity awards, options, and warrants will be equitably adjusted in accordance with the terms of such securities.
Registered stockholders need not take any action to receive post-split shares due to the uncertificated nature of the common stock. Shareholders with shares held through brokerage accounts will see their holdings automatically adjusted to account for the reverse stock split.
Benson Hill is known for leveraging its proprietary genetics and AI-driven technology to enhance soy quality traits, collaborating with strategic partners across the agribusiness supply chain. The information regarding the reverse stock split is based on a press release statement from the company.
InvestingPro Insights
In light of Benson Hill's recent reverse stock split, a closer look at the company's financial health and market performance through InvestingPro metrics and tips offers valuable insights into its current standing. Benson Hill, with an adjusted market capitalization of just $35.41 million, reflects a company of modest size within the broader market landscape.
The company's revenue for the last twelve months as of Q1 2024 stands at $445.8 million, demonstrating a notable growth of 22.55%, which could indicate potential in its innovative approaches to seed development.
However, the financial data reveals challenges as well. The company's gross profit margin is low at 5.43%, suggesting that despite increasing revenues, profitability remains under pressure. This is further illustrated by the negative operating income margin of -14.21%, indicating that Benson Hill is spending more on operations than it is earning.
In terms of stock performance, the price has experienced a significant decline of 86.2% over the past year, which may have been a contributing factor to the decision for a reverse stock split.
An InvestingPro Tip highlights that Benson Hill is trading at a low revenue valuation multiple, which could attract investors looking for undervalued opportunities, particularly when considering the company's recent positive price movement over the last month with a strong return of 17.6%.
Still, the company is also grappling with a significant debt burden and may face difficulties in making interest payments on its debt, which is a crucial consideration for potential investors. For those interested in further analysis, there are an additional 14 InvestingPro Tips available, providing a comprehensive outlook on Benson Hill's financial position and future prospects.
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