BEAVERTON, Ore. - WiSA Technologies, Inc. (NASDAQ:WISA), a company specializing in wireless audio technology, has announced a reverse stock split of its common stock. The Board of Directors approved the 1-for-150 reverse stock split on Monday, and it is set to take effect at the close of business on April 12, 2024.
The company's common stock will begin trading on a split-adjusted basis when the market opens on Monday, April 15, 2024, under a new CUSIP number.
The reverse stock split is intended to increase the per-share trading price of WiSA Technologies' common stock, which the company believes will help maintain its listing on the Nasdaq Capital Market.
The company's transfer agent, VStock Transfer, LLC, will provide instructions to stockholders holding physical stock certificates on the process for exchanging their shares. Those holding shares in book-entry form or through a brokerage account will not be required to take any action as the exchange will be processed automatically.
WiSA Technologies is known for its contributions to high-definition wireless sound experiences in home entertainment systems.
The company collaborates with various consumer electronics brands and manufacturers, such as Harman International, LG, Hisense, TCL, and Bang & Olufsen, to provide immersive audio for movies, music, sports, gaming, and more. WiSA is also a founding member of the Wireless Speaker and Audio Association, which aims to set industry standards for wireless audio interoperability.
Investors are advised that this announcement contains forward-looking statements which are based on current expectations and are subject to risks and uncertainties. These statements include the anticipated effective date of the reverse stock split and the commencement of trading on a split-adjusted basis.
The actual outcome may differ due to various factors, including market conditions and the company's financial performance. WiSA Technologies has cautioned readers not to place undue reliance on these forward-looking statements, which reflect the company's position only as of the date of the press release.
This news article is based on a press release statement from WiSA Technologies, Inc.
InvestingPro Insights
In light of WiSA Technologies' recent announcement regarding a reverse stock split, investors may find the real-time data and expert analysis from InvestingPro particularly insightful. According to InvestingPro, analysts are expecting sales growth for WiSA Technologies in the current year, which could be a positive sign for the company's future performance.
Still, it is important to note that the company has been quickly burning through cash, which raises concerns about its financial sustainability.
InvestingPro Data reveals a market capitalization of $5.27 million USD, underscoring the company's relatively small size in the market. The revenue for the last twelve months as of Q4 2023 stood at $2.08 million USD, but it is worth mentioning that this represents a significant decline of 38.1% from the previous period. The gross profit margin for the same period was deeply negative at -165.96%, indicating that the company is spending much more to produce its goods than it is earning from sales.
Moreover, the price of WiSA Technologies has been trading near its 52-week low, with a previous close of just $0.02 USD, reflecting a potential lack of investor confidence. The stock's price volatility is also high, which could be a concern for risk-averse investors. There are more InvestingPro Tips available, offering deeper insights into WiSA Technologies' performance and prospects. For those interested in exploring further, there are additional 15 InvestingPro Tips that can be accessed through their detailed analytics platform.
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