In a recent SEC filing, Verb Technology Company (NASDAQ:VERB), Inc., a Nevada-based personal services corporation, announced it has received an extension from The Nasdaq Stock Market to execute a reverse stock split. The Nasdaq Hearing Panel has amended the company's deadline to October 22, 2024, to comply with Nasdaq Listing Rule 5550(a)(2).
The extension follows a previous notice, as disclosed on September 4, 2024, where Verb Technology was granted a temporary exception until October 21, 2024. The Panel's decision to amend the exception indicates that the company now has an additional day to meet the necessary requirements.
Verb Technology, which trades under the ticker symbol NASDAQ:VERB, is required to effectuate the reverse stock split to regain compliance with the minimum bid price requirement. The company has been under scrutiny for failing to meet this continued listing standard, which necessitates a minimum bid price of $1.00 per share.
This SEC filing, dated October 2, 2024, and filed as of October 7, 2024, serves as the formal notification of the Panel's amended exception. Rory J. Cutaia, President and Chief Executive Officer of Verb Technology, signed the filing, affirming the company's obligation to report and adhere to the SEC and Nasdaq regulations.
Verb Technology, formerly known as nFusz , Inc., BBOOTH, INC., and Global System Designs, Inc., has undergone several name changes since 2013. The company's principal executive offices are located in Las Vegas, Nevada.
In other recent news, Verb Technology has announced a 1-for-200 reverse stock split, a move aimed to reduce the number of outstanding common stock from around 152.6 million shares to approximately 763,230 shares. This decision follows a significant majority of stockholder votes in favor during the annual meeting held recently. The company anticipates that this action will elevate the market price per share of its common stock, potentially meeting the Nasdaq Capital Market's minimum bid price requirement.
In parallel, Verb Technology has withdrawn a planned securities offering after assessing its financial position and capital requirements. The company's financial health appears to be improving, with cash and equivalents reported at approximately $14.2 million and notes payable around $1.2 million.
On the partnership front, Verb Technology has collaborated with BeautyStat for a live shopping event on TikTok, marking an expansion of its interactive sales applications. The company has also entered into a significant partnership with TikTok Shop, which is expected to generate revenue through service fees and a percentage of monthly revenue from TikTok stores established via their platform.
InvestingPro Insights
Recent data from InvestingPro sheds light on Verb Technology's financial situation and market performance, providing context to the company's efforts to maintain its Nasdaq listing. As of the latest available data, Verb Technology's market capitalization stands at a modest $6.14 million, reflecting its current challenges.
InvestingPro Tips indicate that Verb Technology is "Trading near 52-week low" and has "Not [been] profitable over the last twelve months." These insights align with the company's struggle to meet Nasdaq's minimum bid price requirement. The stock's price has fallen significantly, with a one-year price total return of -93.11% as of the most recent data.
Despite these challenges, an InvestingPro Tip notes that Verb Technology "Holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates this critical period. Additionally, the company is "Trading at a low Price / Book multiple" of 0.4, potentially indicating undervaluation relative to its assets.
Investors considering Verb Technology's situation may find value in exploring the additional 15 tips available on InvestingPro, which could offer a more comprehensive view of the company's prospects as it approaches its reverse stock split deadline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.