Cannabis Corporate Stock Market

Agrify Makes a 1-For-10 Reverse Stock Split

Agrify Cannabis Extractor Sales Could increase USD 7.5M

Agrify Corporation (Nasdaq:AGFY) announced that the Company’s Board of Directors approved a 1-for-10 reverse stock split, to be effective as of 12:01 a.m. on Tuesday, October 18, 2022. The Company’s common stock will open for trading on the Nasdaq Capital Market on Tuesday, October 18, 2022 on a split-adjusted basis under the current trading symbol “AGFY.” The reverse stock split was approved by the Company’s stockholders on October 14, 2022 and is intended to increase the per share trading price of the Company’s common stock to enable the Company to satisfy the minimum bid price requirement for continued listing on the Nasdaq Capital Market. ​

The 1-for-10 reverse stock split will automatically convert 10 current shares of Agrify’s common stock into one new share of common stock. No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fractional share of Agrify’s common stock will receive a whole share in lieu thereof. The reverse stock split will reduce the number of shares of outstanding common stock from approximately 26,710,087 shares to approximately 2,671,009 shares. Proportional adjustments also will be made to the exercise prices of Agrify’s outstanding stock options, warrants, shares held back in connection with recently completed acquisitions and to the number of shares issued and issuable under Agrify’s equity incentive plans. The reverse stock split will not change the par value of Agrify’s common stock and will not reduce the number of authorized shares of common stock.

The Effect of the decision. Credit: Yahoo Finance

 

Yesterday, Agrify’s stock price went down by 26.21% during trading hours as seen in the graph below with the arrow at 13:00PM on the 10/17. The stock spil took effect on the 10/18 at 12:01AM which led its stock price to appreciate before falling again during pre-market hours. 

The success of this reverse stock split will depend on the company’s performance on upcoming financial results and the result of the ongoing lawsuit against the company.

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