🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Society Pass announces reverse stock split to maintain Nasdaq listing

EditorLina Guerrero
Published 04/26/2024, 05:07 PM
SOPA
-

NEW YORK - Society Pass Inc. (NASDAQ:SOPA), a Southeast Asian e-commerce ecosystem, has announced a 1-for-15 reverse stock split approved by its board of directors. The reverse split is scheduled to take effect at the start of trading on May 1, 2024, as the company aims to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its listing on the Nasdaq Capital Market.

Following the reverse split, every fifteen shares of the company's issued and outstanding common stock, each with a par value of US$0.0001, will be combined into one share with the same par value. No fractional shares will be issued. Instead, shareholders will receive a rounded-up whole share in place of any fractional shares resulting from the consolidation.

This corporate action will uniformly affect all shareholders and is not expected to change any shareholder's percentage interest in Society Pass's outstanding common stock, except for minor adjustments due to fractional share rounding. The reverse split will also proportionally decrease the number of authorized shares of the company.

Society Pass, founded in 2018, operates across Vietnam, Indonesia, Philippines, Singapore, and Thailand, which collectively host over 80% of the Southeast Asian population. The company's business model is built on an interconnected set of verticals including loyalty, digital media, travel, telecommunications, and lifestyle services.

The reverse split was approved by the company's board and a certificate of change has been filed with the Secretary of State of Nevada. This move is a strategic step to comply with the trading standards of the Nasdaq Capital Market.

It's important to note that forward-looking statements in the press release indicate that the company's management believes in the potential success of the reverse split. However, actual results could differ due to various factors. Society Pass has stated that it will not update forward-looking statements unless required by law.

This news is based on a press release statement from Society Pass Incorporated.

InvestingPro Insights

In light of Society Pass Inc.'s recent announcement regarding a reverse stock split, a closer look at the company's financials through InvestingPro reveals some critical insights. The reverse split decision comes at a time when Society Pass is grappling with a challenging financial landscape, as reflected by its market capitalization of just 5.49 million USD. The company's price-to-earnings (P/E) ratio stands at a negative -0.3, underscoring the absence of net profitability in the last twelve months as of Q4 2023.

Despite these challenges, there are notable InvestingPro Tips that may influence investor perception. Firstly, Society Pass management has been actively buying back shares, which can be interpreted as a sign of confidence in the company's future prospects. Additionally, the company holds more cash than debt on its balance sheet, providing a level of financial stability in uncertain times.

On the performance front, Society Pass has experienced significant volatility. The 1-week price total return as of the 117th day of 2024 was 22.19%, indicating a recent surge in investor sentiment. However, this short-term gain is set against a backdrop of a steep 84.4% decline in the 1-year price total return, emphasizing the stock's longer-term downward trend.

For investors looking for a deeper dive into Society Pass's financials and strategic positioning, there are additional InvestingPro Tips available. With a total of 17 tips listed on https://www.investing.com/pro/SOPA, investors can gain a more comprehensive understanding of the company's performance and potential. To access this valuable information, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.