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DIAMOND BAR, Calif. - Newegg Commerce, Inc. (NASDAQ: NEGG), an e-commerce company specializing in technology products currently trading at $0.38 with a market capitalization of $149 million, has announced a reverse stock split of its common shares, with approval from its board of directors and controlling shareholders. According to InvestingPro data, the stock has experienced significant volatility, with a beta of 2.88 and a year-to-date return of -3.38%. The twenty-to-one share combination aims to meet the Nasdaq’s minimum listing price per share requirements and is expected to take effect on or around April 7, 2025.
Once the reverse stock split is implemented, Newegg’s common shares will continue to trade on the Nasdaq Capital Market under the ticker symbol NEGG, albeit with a new CUSIP number. This corporate action will proportionately affect all shareholders, although fractional shares resulting from the combination will be exchanged for cash.
Computershare Inc. has been designated as the exchange and paying agent for the share combination. Newegg advises registered shareholders to contact Computershare and beneficial holders to consult their bank, broker, or nominee if they have any questions regarding the process.
The reverse stock split is a strategic move by Newegg to maintain compliance with the Nasdaq’s listing standards, which include a minimum bid price that companies must meet to remain listed on the exchange. By reducing the number of outstanding shares and increasing the share price, Newegg aims to satisfy these requirements without impacting shareholders’ percentage interests in the company. InvestingPro analysis indicates the company operates with challenging fundamentals, including a weak financial health score and gross profit margins of 10.73%. Subscribers can access 12 additional ProTips and comprehensive financial metrics to better understand the company’s position.
This announcement is based on a press release statement from Newegg Commerce, Inc. Investors should note that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Newegg’s future plans, including the timing and anticipated benefits of the share combination, are subject to change based on various factors such as economic conditions, customer demand, and global supply chain challenges.
Newegg, founded in 2001 and headquartered in Diamond Bar, California, is a leading online retailer offering a wide range of products, from PC hardware to consumer electronics and lifestyle technology, generating annual revenue of $1.39 billion. The company also provides e-commerce solutions for businesses, encompassing marketing, supply chain, and technical services. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors seeking exposure to the e-commerce sector. For more information, customers and investors can visit Newegg’s website.
In other recent news, Newegg Commerce, Inc. has officially launched the AMD Radeon RX 9070 and 9070 XT GPUs on its platform. These new models, based on AMD’s RDNA 4 architecture, are now available for purchase and are designed to enhance gaming, streaming, and content creation performance. Newegg has partnered with leading manufacturers to offer a wide selection of these GPUs, with the RX 9070 starting at $549.99 and the RX 9070 XT at $599.99. Additionally, Newegg announced the release of NVIDIA’s GeForce RTX 5070 Ti GPUs, further expanding its lineup with high-performance options for gamers and PC enthusiasts. To manage high demand, Newegg relaunched its Newegg Shuffle program, which provides a fair purchasing opportunity for in-demand products. The NVIDIA RTX 50 Series GPUs, including the RTX 5070 Ti, sold out quickly, reflecting significant consumer interest. Newegg’s ABS brand also introduced new gaming PCs featuring the RTX 5070 Ti, with prices starting at $2,299.99. The company continues to promote its GPU Trade-In Program to encourage sustainable upgrading practices.
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