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SALT LAKE CITY - ClearOne, Inc. (NASDAQ: CLRO), a company specializing in conferencing, collaboration, and network streaming solutions, has announced a forthcoming reverse stock split pending stockholder approval. The proposal comes as the company’s stock, currently trading at $0.48, has declined 34.75% year-to-date according to InvestingPro data. The split aims to bring the company’s stock price in line with Nasdaq’s minimum bid price requirement and will be voted on at a special stockholder meeting scheduled for May 30, 2025.
If authorized, the reverse stock split will consolidate issued and outstanding common stock at a ratio of 1-for-15, effective as of 5:00 p.m. Eastern time on June 2, 2025. The adjusted shares are expected to begin trading on The Nasdaq Capital Market the following day. This strategic move comes as InvestingPro analysis shows the company facing significant challenges, with revenue declining 44.47% and negative EBITDA of $8.46 million in the last twelve months. This move has been approved by ClearOne’s Board of Directors and will be enacted with a certificate of amendment to the company’s Certificate of Incorporation immediately after the stockholder meeting.
The reverse stock split is designed to increase the per-share market price of ClearOne’s common stock, ensuring compliance with Nasdaq’s listing standards. The company’s ticker symbol, CLRO, will remain unchanged, although a new CUSIP number, 18506U203, will be assigned to the stock.
For every 15 shares currently held, stockholders will receive one new share of common stock. Fractional shares resulting from the reverse split will be rounded up to the nearest whole share. The par value of the common stock will remain at $0.001. The reverse split will proportionally adjust the number of shares issuable upon the exercise of stock options and warrants, as well as the number available under equity incentive plans. However, the total authorized shares of common stock will not be affected, reducing the number of issued and outstanding shares from approximately 26.0 million to about 1.7 million.
ClearOne’s transfer agent, Colonial Stock Transfer, will act as the exchange agent for the reverse stock split. Stockholders with shares in electronic book-entry form or held in brokerage accounts will not need to take any action as their shares will be automatically adjusted. Those with physical share certificates will receive instructions from Colonial Stock Transfer post-effective time.
This strategic decision is based on a press release statement and aims to address the company’s compliance with trading regulations, without altering stockholder percentage ownership, except for minimal adjustments due to fractional share rounding.
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