Boxlight announces reverse stock split to meet Nasdaq rules

DULUTH, Ga. - Boxlight Corporation (NASDAQ:BOXL), a provider of interactive technology solutions, has declared a 1-for-5 reverse stock split of its Class A common stock. The move is aimed at complying with Nasdaq’s minimum bid price requirement for continued listing. The company’s stock, currently trading at $0.56, has experienced significant pressure, declining 33% over the past year. According to InvestingPro analysis, which offers 12+ additional insights about BOXL, the stock appears to be trading below its Fair Value.

The reverse stock split is scheduled to take effect at 5:01 p.m. Eastern Time on February 14, 2025. Trading on a reverse split-adjusted basis will commence on February 18, 2025, under the ticker symbol BOXL. The reverse split will reduce the total number of authorized shares of Class A common stock from 18,750,000 to 3,750,000, while the par value will remain at $0.0001 per share. With a market capitalization of just $5.47 million and a current ratio of 2.1, the company maintains adequate liquidity despite operating with significant debt.

This action will result in adjustments to Boxlight’s outstanding equity awards, equity incentive plans, existing agreements, and outstanding warrants. Each warrant will now be exercisable for 1/5th of a share of Class A common stock. The conversion factor for the company’s convertible preferred stock will also be proportionately adjusted. The authorized number of shares of preferred stock will remain at 50,000,000.

Stockholders will not receive fractional shares; instead, fractions resulting from the reverse split will be rounded up to the nearest whole share. VStock Transfer, LLC will manage the transfer and exchange process. Registered stockholders need not take any action to receive post-split shares. Those holding shares through a broker or other nominee will see their holdings automatically adjusted.

The reverse stock split is part of Boxlight’s efforts to maintain its listing on the Nasdaq Capital Market by meeting the minimum bid price requirement of $1.00 per share.

Boxlight specializes in interactive displays, collaboration software, and audio solutions for the education and business sectors. The company’s integrated solution suite is marketed under the Clevertouch®, FrontRow™, and Mimio® brands. With revenue of $150.71 million in the last twelve months and a gross profit margin of 35.46%, the company faces near-term challenges. For comprehensive analysis and detailed financial metrics, access the full Pro Research Report available on InvestingPro, which provides deep-dive analysis of 1,400+ US stocks.

The information provided is based on a press release statement from Boxlight Corporation.

In other recent news, Boxlight Corporation reported a decrease in its Q3 revenue to $36.3 million, a drop of 26.9% from the previous year’s Q3. Despite this decline, largely due to softer demand for its interactive flat panel displays in the U.S., the company remains positive about its long-term growth, citing a favorable market response to new products and a strategic rebranding initiative. Boxlight is rebranding its product lines under three categories: Clevertouch, FrontRow, and Mimio, all branded "By Boxlight."

The company has managed to reduce its net loss to $3.1 million from $17.8 million in Q3 2023 and achieved an adjusted EBITDA of $2.2 million. Boxlight is also focusing on managing operating expenses, targeting a quarterly run rate of $12 million to $13 million by the end of 2024. The company currently holds $141.5 million in assets, $42.3 million in inventory, and $38.8 million in debt, with $6.5 million in stockholders’ equity.

Furthermore, Boxlight is optimistic about growth in Europe and expects improvement in the U.S. market next year. Despite a significant revenue decline in the U.S., European markets such as Germany and Belgium saw revenue increases of 29% and 18%, respectively. The company is preparing for potential impacts from U.S. tariffs and maintaining supplier relationships. It also aims to target growth in the higher education and enterprise sectors.

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