HOUSTON - Nauticus Robotics, Inc. (NASDAQ: KITT), a developer of autonomous robots for ocean industries, has announced a 1-for-36 reverse stock split of its common stock, set to take effect after market hours on July 22, 2024. The action follows approval from the company's Board of Directors and a green light from shareholders at the annual meeting on June 17, 2024.
The reverse stock split aims to boost Nauticus' share price to meet the minimum bid price requirements of The Nasdaq Capital Market and make the stock more appealing to institutional investors. For current shareholders, the consolidation means that for every 36 shares owned, they will be combined into a single share.
Fractional shares resulting from the split will be rounded up to the nearest whole share. This will not alter the company's ownership or the total value of shares held by investors, but it is expected to proportionally increase the stock price.
Trading of Nauticus' common stock will temporarily halt at the time the reverse split becomes effective and is expected to resume on the morning of July 23, 2024, under a new CUSIP number. Shareholders with electronic shares need not take any action, while those with certificated shares will receive specific instructions from the company's transfer agent.
Nauticus Robotics specializes in the creation of advanced robotic systems for service, sales, and licensing in the commercial and defense sectors. The company's technology aims to reduce operational costs and environmental impact while improving data collection and analytics for maintaining subsea infrastructure.
This move comes amidst the company's efforts to commercialize new products and capitalize on customer interest in its innovative offerings. Nauticus emphasizes that the reverse stock split is a strategic step to enhance the company's market position and attract a broader investor base.
The information regarding the reverse stock split is based on a press release statement from Nauticus Robotics, Inc.
In other recent news, Nauticus Robotics has reported a Q1 2024 profit of $7.4 million, marking a significant shift from previous losses. This financial turnaround has been attributed to aggressive cost-cutting measures and a boost in cash balance to $6.2 million, supported by recent funding. The company has also announced a strategic partnership with Florida Atlantic University aimed at reducing costs and nurturing a fresh talent pipeline.
In a recent special meeting, the company's shareholders approved several key proposals. These included issuing shares upon the conversion of debt under various agreements and authorizing the board of directors to enact a reverse stock split at a ratio between one to six and one to seventy. Still, the proposal to increase the authorized shares of the company's common stock from 625 million to 5 billion did not pass.
These recent developments are part of Nauticus Robotics' ongoing efforts to manage its capital structure and secure the necessary financial flexibility for future growth. The company is focusing on its Aquanaut ToolKITT product as a primary revenue driver and is considering a reverse stock split to align with NASDAQ listing requirements. Despite a decrease in revenue compared to the previous year, the company's recent profit and increased cash balance point to a positive trajectory.
InvestingPro Insights
As Nauticus Robotics, Inc. (KITT) maneuvers through its reverse stock split, the company's financial health and market performance are crucial for investors to consider. Nauticus operates under a significant debt burden and analysts have raised concerns about its ability to meet interest payments, as indicated by the InvestingPro Tips. This is particularly relevant given the company’s strategic decision to execute a reverse stock split in hopes of attracting institutional investors and maintaining its listing on The Nasdaq Capital Market.
Examining the company's latest financial data, Nauticus Robotics has a market capitalization of $14.26 million and has been experiencing a sharp decline in revenue, with a -64.64% change over the last twelve months as of Q1 2024.
Furthermore, the company's gross profit margin stands at a concerning -160.96% during the same period. These figures highlight the challenges Nauticus faces in achieving profitability and sustaining operations, which align with the InvestingPro Tips that suggest the company is quickly burning through cash and may not be profitable this year.
The stock's performance also reflects the company's difficulties. With a 1-year price total return of -93.94%, investors have witnessed a significant erosion in value. Moreover, the InvestingPro Tips reveal that the stock has been trading with high price volatility, which could be a factor for those considering the stock's future post-reverse split.
For those interested in a deeper analysis, there are 17 additional InvestingPro Tips available, which can provide a more comprehensive outlook on KITT's financial health and market position. To access these insights and make more informed investment decisions, consider using the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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