Edible Garden AG Incorporated, a company involved in controlled environment agriculture, has disclosed a planned reverse stock split of its shares of common stock at a ratio of 1-for-30. The move, which takes effect as of 12:01 a.m. ET on Thursday, January 26, 2023, will see shares of Edible Garden trade on a post-split foundation on Nasdaq under the current trading symbol “EDBL” at the market open on January 26, 2023.
Edible Garden Ag decided to implement the reverse stock split at the company’s special meeting of stockholders held on January 24, 2023. At this meeting, stockholders ratified an amendment to the company’s certificate of incorporation to execute a reverse stock split in a range of 1-for-25 to 1-for-75 and gave the board of directors the authority to implement and select the exact split ratio within this range. The board subsequently set the ratio at 1-for-30.
The CEO of Edible Garden, Jim Kras, stated that the reverse stock split is implemented to meet Nasdaq’s minimum bid price requirements and to improve the marketability of the company’s shares. This move is in line with other companies listed on the Nasdaq stock exchange, which are looking to enhance the marketability of their shares and ‘enhance its attractiveness’ to potential investors.
A couple of weeks ago, the company received a de-listing notice from the NASDAQ qualification department as its shares traded below $1.00 for 30 consecutive trading days.
When the reverse stock split comes into effect, every thirty current shares of the company’s issued and outstanding common stock will combine into one share. However, the company ensured that each stockholder’s percentage ownership interest in Edible Garden would remain unchanged after the reverse stock split, ensuring that stockholders did not see any negative impact on their investments due to the move.