ONTARIO, Calif. - Nature's Miracle Holding Inc. (NASDAQ: NMHI), a company specializing in vertical farming technology, has announced a 1-for-30 reverse stock split of its common stock set to take effect on November 21, 2024. The adjustment aims to raise the bid price of the company's shares to comply with the Nasdaq Global Market's minimum bid price requirement.
With the reverse stock split, every 30 existing shares of common stock will be automatically converted into one share. This consolidation is expected to proportionally reduce the number of shares outstanding without altering shareholders' relative ownership percentages, barring minor changes due to rounding up fractional shares at the participant level.
The company's transfer agent, Continental Stock Transfer & Trust Company, will manage the exchange process for the reverse stock split. Stockholders of record will receive information detailing changes in their holdings post-split. Those owning shares through banks, brokers, or other nominees will see their accounts adjusted automatically and need not take further action, subject to the processes of their respective institutions.
Nature's Miracle operates in the Controlled Environment Agriculture (CEA) industry, providing equipment and services for greenhouse and indoor growing environments through its subsidiaries Visiontech Group, Inc. and Hydroman, Inc. The company supplies a range of hydroponic products to North American growers.
The reverse stock split is a strategic move to ensure Nature's Miracle's continued listing on the Nasdaq by meeting the exchange's minimum bid price rule of $1.00 per share. The company's new CUSIP number following the reverse stock split will be 63903P 209.
This news is based on a press release statement from Nature's Miracle Holding Inc. and serves to inform shareholders and the market of the upcoming changes to the company's stock structure.
In other recent news, Nature's Miracle Holdings Inc. has set terms for a public offering aiming to raise approximately $3 million. The offering is managed by D. Boral (OTC:BOALY) Capital LLC and is expected to close around November 12, 2024. In a strategic move, the company has also announced the rebranding of its subsidiary, Hydroman Inc., to Hydroman Electric Corporation, indicating a shift towards the electric vehicle sector.
On the financial front, Nature's Miracle has entered into several agreements for convertible promissory notes totaling $680,460 and reduced its trade payable debt by $2.1 million through an agreement with Visiontech Group, Inc., and Uninet Global Inc. The company has also secured a $5.1 million sales agreement with What Rebates LLC and a $2.4 million purchase order from a major indoor grower in California for its Efinity brand grow lights. These agreements are expected to significantly enhance the company's revenue in late 2024.
However, the company faces potential Nasdaq delisting due to non-compliance with market value requirements. Nature's Miracle plans to appeal this decision and present a plan to regain compliance. In other developments, the company's Chief Operating Officer, Darin Carpenter, has transitioned to a consulting role, and an exclusive distribution agreement has been entered with Vaighai Agro Products Ltd. for distributing Gro-Med Coco Coir Substrate products across the U.S. Plans for a merger with Agrify Corporation, however, have been mutually terminated. These are the latest developments in the company's operations.
InvestingPro Insights
Nature's Miracle Holding Inc.'s decision to implement a reverse stock split comes amid challenging financial circumstances. According to InvestingPro data, the company's revenue for the last twelve months as of Q3 2024 stood at $9.99 million, with a concerning revenue growth decline of 3.43% over the same period. This context underscores the urgency of the company's move to maintain its Nasdaq listing.
InvestingPro Tips highlight that NMHI's stock price has fallen significantly over the last year, with a staggering year-to-date price total return of -99.1% as of the latest data. This dramatic decline likely contributed to the need for the reverse split to meet Nasdaq's minimum bid requirements.
The company's financial health appears precarious, with InvestingPro data showing a negative gross profit of $0.51 million and an operating income of -$8.26 million for the last twelve months as of Q3 2024. An InvestingPro Tip notes that NMHI suffers from weak gross profit margins, which is evident in the -5.13% gross profit margin reported.
These insights provide crucial context for understanding the company's decision to pursue a reverse stock split. Investors seeking a more comprehensive analysis can access additional InvestingPro Tips, with 5 more tips available for NMHI on the InvestingPro platform.
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