Cyren Ltd. (CYRN) plunged into the current market after announcing its reverse stock split in a press release. Since yesterday’s closing price, CYRN has declined more than 22.44% in value, making its stock worth less than $0.18. The stock closed at $0.24 at the end of the previous trading session. The stock trading volume in the previous trading session was around 1.18 million shares.
Cyren Ltd. (CYRN) reverse stock split
To reflect a 1:20 reverse stock split, CYRN has announced the action. Shares of the company will trade on a split-adjusted basis on February 9, 2022, following the reverse share split.
Shareholders approved a 1:4 to 1:20 reverse share split by the board and articles of incorporation changes for an increment in the company’s allowed stock capital. The decision will happen on the date set for the event. In addition to the 216 million to 240 million share capital increase, the Board of Directors approved a 1:20 reverse share split.
There will be an additional 80 million common stock shares after the reverse share split. The authorized share capital of the firm has been enhanced to NIS 240 million, with a par value of NIS 3.00 per common stock share.
There will be no fractional shares in the Reverse Share Split. It is customary to round down fractional shares towards the following entire common stock when calculating dividends. The reverse share split will not affect those who hold their ordinary shares of the CYRN through a bank, brokerage, or other nominated in book-entry form. Immediately after the Reverse Share Split, the Company’s brokerage will inform stakeholders of their common stock ownership history.
Conclusion
CYRN stock is currently below $1 per share, which means they have to increase the stock price to meet NASDAQ compliance. If they failed in it, it could threaten its listing on the stock market.
