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CHICO, Calif. - Lulus Fashion Lounge Holdings, Inc. (NASDAQ:LVLU), currently trading at $0.35 with a market capitalization of $16 million, will implement a 1-for-15 reverse stock split effective July 3, 2025, the company announced in a press release statement. The move is primarily intended to bring the company into compliance with Nasdaq Capital Market’s minimum bid price requirement. According to InvestingPro data, the stock has declined nearly 66% year-to-date.
Trading under the existing LVLU symbol will reflect the split when markets open on July 7, 2025. The reverse split will reduce Lulus’ outstanding common stock from approximately 41.5 million shares to about 2.8 million shares, while the authorized share count remains at 250 million.
Stockholders who would receive fractional shares due to the split will have their holdings rounded up to the nearest whole number. No cash will be paid for fractional shares.
The company also disclosed entering a Forbearance Agreement with Bank of America on June 23, 2025, which expires on August 15, 2025, or earlier under certain conditions. According to the statement, this agreement provides Lulus additional time to pursue alternative debt financing options.
Lulus reports it has delivered two term sheets from financial institutions that it believes can complete a refinancing transaction before the August 15 maturity date.
The attainable luxury fashion brand, founded in 1996, serves millions of customers worldwide through its e-commerce platform, offering women’s clothing and accessories with a focus on bridal and special occasion wear.
In other recent news, Lulus Fashion Lounge Holdings Inc. reported a challenging first quarter of 2025, with net revenue of $64.2 million, marking a 17% decrease from the previous year. The company faced a net loss of $8 million, which widened from the $5.7 million loss reported in the same period last year. Additionally, Lulus withdrew its full-year revenue and adjusted EBITDA guidance, citing ongoing uncertainties in the market. In response to its financial challenges, Lulus applied to transfer its listing to the Nasdaq Capital Market after being notified of its non-compliance with the Nasdaq Global Market’s listing requirements. The company has also announced the resignation of its Chief Financial Officer, Tiffany R. Smith, effective at the end of June, with CEO Crystal Landsem stepping in as Interim CFO during the transition. Despite these challenges, Lulus reported positive cash flow from operations of $8.3 million and reduced its net debt to $1.5 million from $8.6 million at the end of 2024. The company continues to focus on cost reduction initiatives and strategic sourcing to improve its financial position.
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