WaveDancer Announces Reverse Stock Split
FAIRFAX, Va., Oct. 17, 2023 (GLOBE NEWSWIRE) -- WaveDancer, Inc., (NASDAQ: WAVD) announced today a reverse stock split of its common stock ("Reverse Split") of one post-split share for every ten pre-split shares. The Company expects that the common stock will begin trading on a split-adjusted basis at the open of trading on Wednesday, October 18, 2023, under the new CUSIP number 456696202. The Reverse Split is an effort to regain compliance with Nasdaq's listing rules.
The Company obtained shareholder approval for the Reverse Split at its annual meeting of shareholders on October 11, 2023. The Company's board of directors then approved the Reverse Split ratio of 1 for 10. The principal purpose of the Reverse Split is to decrease the total number of shares of common stock outstanding and proportionately increase the market price of the common stock in order to meet the continued listing requirements of the Nasdaq Capital Market. The Company's common stock will continue to trade under the symbol "WAVD."
As a result of the Reverse Split, every ten shares of the Company's common stock issued and outstanding will be automatically reclassified into one new share of common stock. The Reverse Split will not modify any rights or preferences of the shares of the Company's common stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company's outstanding equity awards and warrants, as applicable. No fractional share will be issued as a result of the Reverse Split and any fractional share otherwise issuable to a shareholder will be rounded up to the nearest whole number. The common stock issued pursuant to the Reverse Split will remain fully paid and non-assessable. The Reverse Split will not affect the number of authorized shares of common stock or the par value of the common stock.
Issuer Direct Corporation has been appointed by the Company to act as its exchange agent for the Reverse Split. Stockholders owning pre-split shares via a bank, broker or other nominee will have their positions automatically adjusted to reflect the Reverse Split and will not be required to take further action in connection with the Reverse Split, subject to brokers' particular processes. Similarly, registered stockholders holding pre- split shares of the Company's common stock electronically in book-entry form are also not required to take further action in connection with the Reverse Split. Holders of certificated shares will be contacted by the Company or its exchange agent with further details about how to surrender old certificates.
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About WaveDancer
WaveDancer, based in Fairfax, VA, has been servicing federal and commercial customers since 1979. The Company is in the business of developing and maintaining information technology (“IT”) systems, modernizing client information systems, and performing other IT-related professional services to government and commercial organizations.
Additional information for investors
This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2022 and in other filings with the Securities and Exchange Commission.
For investor inquiries contact:
Tim Hannon
CFO
