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MIAMI BEACH, FLORIDA - LQR House Inc. (NASDAQ:YHC), a company specializing in the online spirits and beverage market, has declared a reverse stock split of its common stock at a ratio of 35-for-1, set to take effect on April 21, 2025. Currently trading at $0.19 per share with a market capitalization of $6.95 million, this strategic move aims to comply with Nasdaq’s continued listing requirements and strengthen the company’s capital structure for long-term growth. According to InvestingPro analysis, the stock shows high price volatility and appears undervalued based on its Fair Value assessment.
The reverse stock split will reduce the number of LQR House’s issued and outstanding shares from approximately 37.3 million to about 1.07 million. Concurrently, the number of authorized shares will be adjusted from 350 million to 10 million. While analysts expect 68% revenue growth this year, InvestingPro data reveals challenging fundamentals, including negative gross margins of -12.52%. The company’s stock will continue trading on the Nasdaq under the ticker symbol "YHC," with a new CUSIP number of 50215C307. Get access to 15+ additional InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.
CEO Sean Dollinger stated that this decision underscores the company’s dedication to its shareholders and the future of LQR House. The reverse split is expected to enhance investor confidence and secure the company’s position on the Nasdaq.
LQR House operates the ecommerce platform cwspirits.com, which offers a variety of spirits, wines, and champagnes, and is supported by a marketing agency that focuses on the alcohol industry. The company leverages technology, including software, data analytics, and artificial intelligence, to improve the consumer experience and drive sales.
The information in this article is based on a press release statement from LQR House.
In other recent news, LQR House Inc. has made significant strides in its business operations and financial standing. The company announced an exclusive partnership with Of The Earth Distribution to distribute its SWOL Tequila brand in Greece and Thailand starting April 1, 2025. This move is part of LQR House’s strategy to expand its premium portfolio’s reach, capitalizing on less saturated markets compared to North America. Additionally, LQR House secured a new purchase order for 168 cases of SWOL Tequila in Ontario, following a successful initial sale in the province. The Liquor Control Board of Ontario has approved SWOL Tequila for distribution in select venues, highlighting the brand’s growing appeal in Canada.
In financial developments, LQR House addressed Nasdaq compliance concerns by improving its financial position. The company received approximately $4.05 million from warrant exercises in January 2025 and $5.01 million from a stock sale in March 2025, totaling about $9.06 million in net proceeds. As of early April 2025, LQR House believes it has regained compliance with Nasdaq’s minimum equity requirement. Nasdaq will continue to monitor the company’s compliance status, with the risk of delisting if requirements are not met in future reports. Furthermore, LQR House announced the resignation of board member David Lazar, acknowledging his contributions to the company’s restructuring efforts.
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