NEW YORK - Kidpik Corp. (NASDAQ: PIK), a subscription-based online retailer of children's apparel, has announced a reverse stock split of its common stock at a 1-for-5 ratio. The reverse stock split is scheduled to take effect on March 7, 2024, at 12:01 a.m. Eastern Time, with split-adjusted shares expected to begin trading on the Nasdaq Capital Market at the market open on the same day.
The move is aimed at regaining compliance with the Nasdaq's minimum bid price requirement of $1.00 per share, a common reason for companies to undertake a reverse stock split. Kidpik's stockholders had previously approved the reverse split during a Special Meeting on June 19, 2023, with the final ratio decided by the company's Board on February 20, 2024.
Post-split, the number of outstanding common shares will reduce from approximately 9.5 million to about 1.9 million, subject to adjustments for rounding and any potential additional issuances before the effective date of the reverse stock split. The company's trading symbol, PIK, will remain unchanged.
The reverse stock split will also proportionally adjust outstanding options and other securities that give holders the right to obtain common stock. The number of shares allocated for the company's equity incentive plan will be similarly revised. Kidpik has stated that no fractional shares will be issued; stockholders who would otherwise receive a fraction of a share will be given one whole share instead.
The par value of Kidpik's common stock will remain at $0.001 per share, and the reverse split will not alter the authorized number of common or preferred stock shares. Further details about the reverse stock split can be found in Kidpik's definitive proxy statement filed with the U.S. Securities and Exchange Commission on May 1, 2023, as well as in a Current Report on Form 8-K to be filed after the action becomes effective.
Kidpik, founded in 2016, specializes in delivering curated boxes of children's fashion, styled according to each customer's preferences. The company's offerings are available through a subscription model or via their e-commerce platform.
This article is based on a press release statement from Kidpik Corp.
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