LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a company specializing in smart glass technology and fiber optic networks, announced its plan to execute a 1-for-150 reverse stock split. The split is set to take effect with trading on a split-adjusted basis beginning Tuesday, June 25, 2024, on the Nasdaq Capital Market under the ticker symbol "CRKN".
This corporate action was approved by the Board of Directors on June 12, 2024, pending shareholder approval, which was subsequently obtained at the Annual Meeting on June 14, 2024. The reverse stock split will consolidate every 150 shares of the company's issued and outstanding common stock into one share. Shareholders will not receive fractional shares in the process; instead, any fractions of shares will be rounded up to the nearest whole number. This move is designed to affect all stockholders uniformly and will not change any stockholder's percentage interest in Crown's outstanding common stock, except for minor adjustments due to the treatment of fractional shares.
Crown Electrokinetics is divided into two main sectors: Fiber Optics and Electrokinetics Film. The latter is responsible for the development of the company's Smart Window Insert, which utilizes patented electrokinetic film technology. The Fiber Optics division focuses on constructing underground fiber optic networks and other related utility infrastructure projects.
The company has not provided any additional information regarding the rationale behind the reverse stock split or its potential impact on the company's market position or future prospects. The reverse stock split is a common strategy companies may use to adjust the number of shares outstanding and often to increase the market price per share.
Investors and shareholders are advised that the information reported is based on a press release statement from Crown Electrokinetics and should monitor the company's filings and announcements for further details regarding the reverse stock split and any other corporate developments.
In other recent news, Crown Electrokinetics Corp. has secured a conditional extension for its Nasdaq listing, following a hearing with the Nasdaq Hearings Panel. The company now has until July 23, 2024, to meet all criteria for continued listing on the Nasdaq Capital Market. These are among the recent developments at Crown Electrokinetics, which is also addressing a NASDAQ bid price non-compliance issue.
In its financial results for the first quarter of 2024, Crown Electrokinetics reported a net loss of $4.6 million, with operational net losses amounting to $3.7 million. Despite these losses, the company noted significant progress in its film and fiber divisions. The fiber division has secured notable projects in Nevada, Idaho, and Mexico, actively generating revenue.
Sheldon Davis has been appointed as President of the ElectroKinetics film division, and Corey Boaz has taken the helm of the fiber division. The company anticipates shipping its Gen 1 Alpha Smart Window Insert in small quantities by late summer. While the company faces challenges, it remains focused on innovation, operational efficiency, and market expansion.
InvestingPro Insights
Crown Electrokinetics Corp. (NASDAQ:CRKN) has recently made headlines with its decision to implement a reverse stock split, a move that often garners mixed reactions from the market. In light of this development, it's crucial to consider the company's financial health and market performance.
An important metric to note is the company's market capitalization, which currently stands at a modest 14.1 million USD. This figure gives us a snapshot of the company's size and, combined with other metrics, can help investors gauge the potential risks and rewards associated with investing in CRKN.
Looking at the company's revenue growth, there's a significant increase in the last twelve months as of Q1 2024, with a staggering rate of 3595.45%. This explosive growth rate may signal potential in the company's operations and market reach, provided it can be sustained. Additionally, the revenue growth for the quarter in Q1 2024 is reported at 3000.0%, further underlining the company's recent top-line expansion.
Despite these impressive growth figures, it's worth noting that CRKN is currently trading at a high Price / Book multiple of 6.08, which could suggest that the stock is valued richly relative to its net assets. This valuation metric is particularly relevant in the context of the reverse stock split, as it may affect investor perception of the stock's worth.
From the perspective of "InvestingPro Tips", while analysts anticipate sales growth in the current year, they also highlight concerns such as a rapid cash burn and weak gross profit margins. Moreover, the stock has experienced significant volatility, with a one-month price total return as of the specified date in 2024 showing a sharp decline of 60.22%. These insights suggest that while there may be growth on the horizon, there are also substantial risks that investors should be mindful of.
For investors looking to delve deeper into Crown Electrokinetics' financials and market performance, there are additional "InvestingPro Tips" available at https://www.investing.com/pro/CRKN. These tips could provide valuable guidance, especially in the context of the company's recent reverse stock split. Moreover, investors can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to an extensive array of financial analysis tools and tips.
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