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LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ: CRKN), a technology infrastructure company currently valued at approximately $5.8 million in market capitalization, has announced a reverse stock split of its common stock at a ratio of 1-for-150, effective Thursday, January 30, 2025. According to InvestingPro data, the stock has seen significant price movement, trading near its 52-week low of $0.07. The reverse split is aimed at consolidating shares to maintain the company's Nasdaq listing, which is seen as essential for Crown's growth and credibility.
The decision for the reverse split was approved by the company's Board of Directors on January 25, 2025, following a favorable vote from stockholders at a special meeting held on January 14, 2025. After the reverse split, every 150 shares of issued and outstanding common stock will be automatically converted into one share. This action will not issue fractional shares; instead, stockholders will receive rounded up whole shares.
Crown's CEO and Chairman, Doug Croxall, stated that the reverse stock split is a strategic move to strengthen the company's position for long-term success. He highlighted that Crown currently has a healthy cash balance exceeding $25 million, growing revenues, and is expanding its solutions portfolio. InvestingPro analysis confirms strong revenue growth prospects, with analysts forecasting over 800% growth for FY2024. The company maintains a "FAIR" Financial Health score, though InvestingPro subscribers can access 14 additional key insights about Crown's financial position and growth prospects through the comprehensive Pro Research Report.
The company recently welcomed Andy Mayer and his team, which Croxall believes will enhance Crown's offerings, especially in disaster rehabilitation and pipeline industry expertise. Crown aims to be a significant contributor to California's recovery and rebuilding efforts in the aftermath of the wildfires.
Crown's common stock will continue to be listed on The Nasdaq Capital Market under the ticker symbol CRKN, with a new CUSIP number of 228339 503 post-split. The reverse stock split will be uniformly applied to all stockholders and is not expected to alter any stockholder's proportional ownership in the company, barring adjustments for fractional shares.
For further details on the reverse stock split, interested parties can refer to Crown's filings with the Securities and Exchange Commission. This press release, based on a company statement, provides investors with the latest information regarding Crown's strategic financial decisions. Based on InvestingPro's Fair Value analysis, Crown's stock currently appears undervalued, presenting a potential opportunity for investors seeking growth prospects in the technology infrastructure sector.
In other recent news, Crown Electrokinetics has reported a record revenue of $8 million in Q3 2024, marking a significant increase from the previous year. The surge in earnings is primarily attributed to contracts from newer business divisions, particularly Fiber Optics and Water Solutions. However, the company reported a net loss of $5.9 million for the quarter, mainly due to increased operating expenses.
Looking ahead, Crown has provided revenue guidance of $9 million for Q4 and $22 million for the full year of 2024. The company also introduced a full-year 2025 outlook, expecting revenue between $30 million and $35 million, and anticipates achieving profitability by 2025.
In other recent developments, Crown has secured three major customer agreements in the Fiber Optics division and initiated a commissioned installation of two slant wells in Cabo San Lucas, under the Water Solutions division. However, the company faces potential Nasdaq delisting due to non-compliance with the exchange's minimum bid price requirement. Crown plans to request a hearing before the Panel to address this issue and regain compliance.
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