ClearOne announces 1-for-15 reverse stock split

SALT LAKE CITY - ClearOne, Inc. (NASDAQ: CLRO), a conferencing and collaboration solutions company with a market capitalization of $8.68 million, announced today that it will implement a 1-for-15 reverse stock split of its issued and outstanding common stock. The move is set to take effect at 5:00 p.m. Eastern time on June 9, 2025, with the stock trading on a split-adjusted basis from market open on June 10, 2025. The decision comes as the stock trades near its 52-week low of $0.33, having declined about 56% over the past year. According to InvestingPro analysis, the company currently shows signs of being undervalued, though it faces significant operational challenges with a 44% year-over-year revenue decline.

The decision follows the approval by ClearOne’s stockholders at a special meeting on May 30, 2025, and the Board of Directors’ selection of the reverse split ratio. The company filed a Certificate of Amendment to its Certificate of Incorporation with the Delaware Secretary of State to enact the reverse stock split. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 4.81, though its overall financial health score remains weak at 1.1. Subscribers can access 12 additional key insights about ClearOne’s financial position and market performance.

This strategic initiative aims to elevate the per-share market price of ClearOne’s common stock, ensuring compliance with the Nasdaq Capital Market’s minimum bid price requirement for continued listing. Post-split, the common stock will retain the ticker symbol "CLRO" but will be identified by a new CUSIP number: 18506U203.

Every 15 shares of ClearOne’s common stock will be automatically converted into one new share, with no fractional shares issued. Shareholders who would receive a fractional share will instead be given one whole share of common stock. The reverse stock split will proportionally adjust the number of shares issuable upon the exercise of outstanding stock options and warrants, as well as the shares reserved for issuance under the company’s equity incentive plans. While the authorized number of shares remains the same, the issued and outstanding shares will decrease from approximately 26.0 million to about 1.7 million.

ClearOne’s transfer agent, Colonial Stock Transfer, is appointed as the exchange agent for the reverse stock split. Registered stockholders with pre-split shares in book-entry form need not take any action to obtain post-split shares. Those with shares in brokerage accounts will have their positions automatically adjusted. Shareholders with physical stock certificates will receive instructions from Colonial Stock Transfer after the effective time.

The information in this article is based on a press release statement from ClearOne.

In other recent news, ClearOne has announced plans for a reverse stock split to comply with Nasdaq’s minimum bid price requirement. This move, pending stockholder approval, is set to be voted on at a special meeting on May 30, 2025. If approved, the reverse stock split will occur at a 1-for-15 ratio, consolidating the company’s common stock and becoming effective on June 2, 2025. The adjusted shares are expected to trade on The Nasdaq Capital Market the following day. This decision, approved by ClearOne’s Board of Directors, aims to elevate the per-share market price of ClearOne’s stock to meet Nasdaq’s listing standards. The company’s ticker symbol will remain unchanged, but a new CUSIP number will be assigned. Stockholders will receive one new share for every 15 shares held, with fractional shares rounded up. The reverse split will adjust the number of shares issuable upon the exercise of stock options and warrants but will not affect the total authorized shares of common stock.

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