PLANO, TX - Intrusion Inc. (NASDAQ:INTZ), a cybersecurity firm, has announced a 1-for-20 reverse stock split, scheduled to take effect after the market closes on March 22, 2024. The move aims to boost the company's stock price to comply with Nasdaq's minimum bid price requirement for continued listing.
The reverse stock split, approved by stockholders on March 15, will see every 20 shares of Intrusion's common stock combined into one share. This measure is designed to increase the per-share price, helping the company maintain its listing on the Nasdaq Capital Markets. Post-split, the stock will trade under the same ticker symbol "INTZ" with a new CUSIP number.
In addition to the reverse stock split, Intrusion has entered into an exchange agreement with Streeterville Capital, LLC to convert $9,275,000 in senior debt into newly designated Series A Preferred Stock. This debt-for-equity swap, involving notes issued in March and June of 2022, is part of the company's broader strategy to meet Nasdaq's equity standard.
No fractional shares will be issued as a result of the reverse split. Instead, stockholders will receive a rounded-up whole share for any fractional share that would have resulted. The split will not change the total authorized shares or the par value per share, which remains at $0.01. All shareholders will be affected uniformly, and adjustments will be made to the exercise prices and number of shares underlying outstanding equity awards and warrants.
Intrusion's transfer agent, Computershare Inc., will handle the exchange process for the reverse stock split. Stockholders with pre-split shares in electronic book-entry form do not need to take action to receive post-split shares. Those with shares held in brokerage accounts will see their positions automatically adjusted.
Intrusion Inc. specializes in cybersecurity solutions, offering a threat intelligence database and Intrusion Shield, a product designed to enhance network security for businesses.
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