American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) Plunges on Reverse Stock Split Decision

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Shares of American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) plunges over -22.94% to $2.30 in pre trading session on Monday as the firm has announced a 1-for-15 reverse stock split of its issued and outstanding common stock. The Reverse Stock Split will become effective on September 30, 2022, upon the filing of an amendment to the Company’s amended and restated certificate of incorporation with the Delaware Secretary of State, and the Company’s common stock is expected to begin trading on a split-adjusted basis when the market opens on October 3, 2022. The Company’s common stock will continue to trade under the ticker “AVCT” on the Nasdaq Capital Market. Following the Reverse Shares Split, the new CUSIP number for the common stock will be 030382204.

As previously disclosed, at the Company’s annual meeting of stockholders held on May 24, 2022, stockholders voted to approve three alternative amendments to the Company’s Charter to effect a Reverse Stock Split of the Company’s common stock at a ratio of either 1-for-5, 1-for-10, or 1-for-15, with such ratio, as well as the implementation and timing of such Reverse Stock Split, to be determined by the Company’s board of directors. Following that, the board of directors adopted a 1-for-15 reverse stock split.

As a result of the Reverse Stock Split, each share of common stock issued and outstanding immediately prior to the Effective Time will be automatically reclassified as and converted into one-fifteenth (1/15) of a share of common stock. The Reverse Stock Split will effects all stockholders evenly and will not change any stockholder’s percentage participation in the Company’s equity, save to the extent that the Reverse Stock Split results in a stockholder holding a fractional share. There will be no fractional shares issued as a result of the Reverse Stock Split. Stockholders who would otherwise be entitled to a fractional share will instead be entitled to cash from the Company’s transfer agent, Continental Stock Transfer and Trust Company.

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