SAN FRANCISCO - Marin Software Incorporated (NASDAQ:MRIN), a digital marketing software provider, announced today that its stockholders have approved a reverse stock split. The board-authorized measure will consolidate existing shares at a ratio of 1-for-6, set to take effect on the evening of April 12, 2024.
Consequently, the company's common stock is expected to begin trading on a split-adjusted basis when the market opens on April 15, 2024.
This corporate action will reduce the number of Marin Software's outstanding common shares from roughly 18.4 million to about 3.1 million. The reverse stock split aims to proportionately adjust each shareholder's stake in the company without altering their percentage of ownership. Fractional shares resulting from the split will be rounded down and shareholders will receive cash payments for these fractions.
In addition to the reverse stock split, Marin's stockholders voted to decrease the number of authorized shares of common stock. The new authorized share count will be determined by multiplying the original number of shares, 142,857,143, by two times the reverse split ratio.
Marin's common stock will continue trading on the Nasdaq Capital Market under the ticker symbol MRIN, but will be assigned a new CUSIP number (56804T 304). Registered stockholders will receive instructions from Broadridge Corporate Issuer Solutions, Inc., the company’s transfer agent, on how to exchange their stock certificates. Those holding shares in street name will not require any action.
The definitive proxy statement detailing the reverse stock split and authorized share reduction is available in filings with the Securities and Exchange Commission, dated March 5, 2024, and amended on March 28, 2024.
Marin Software is known for its unified SaaS advertising management platform, which serves advertisers seeking efficiency and transparency in their marketing programs across major publishers. Based in San Francisco, the company's technology supports global marketing campaigns.
This press release includes forward-looking statements about the timing and implications of the reverse stock split and share reduction. These statements are subject to risks and uncertainties, including the Nasdaq's approval timing and the filing of necessary corporate amendments.
The forward-looking statements are current as of the date of the press release, with Marin Software not committed to updating them in the future except as required by law. The information presented is based on a press release statement.
InvestingPro Insights
As Marin Software Incorporated (NASDAQ:MRIN) prepares for its reverse stock split, the company's financial position and market performance become focal points for investors. According to InvestingPro data, Marin Software's market capitalization stands at a modest $5.35 million, reflecting the challenges faced by smaller firms in the competitive digital marketing landscape.
InvestingPro data also reveals a Price / Book ratio for the last twelve months as of Q4 2023 at 0.39, which could indicate that the company's stock is trading below the value of its assets. This aligns with one of the InvestingPro Tips, highlighting that Marin is trading at a low Price / Book multiple.
The company's revenue for the same period was $17.73 million, with a Gross Profit Margin of 34.38%, which suggests that while the company is generating a reasonable margin on its services, top-line growth is a concern with a revenue decline of -11.43% over the last twelve months.
InvestingPro Tips for Marin Software further inform us that the management has been actively buying back shares, a move that can often be interpreted as a sign of confidence in the company's future prospects. Moreover, Marin holds more cash than debt on its balance sheet, which could provide some financial stability in the short term. Notably, the company has more liquid assets than short-term obligations, which is crucial for meeting its immediate financial commitments.
For investors seeking a deeper dive into Marin Software's financial health and market potential, there are 9 additional InvestingPro Tips available at InvestingPro. These tips offer a comprehensive analysis that could guide investment decisions. Moreover, readers can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive insights and data that can empower smarter investing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.