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MESA, Ariz. - Nxu, Inc. (NASDAQ: NXU), a technology company specializing in energy storage and charging solutions, has announced a reverse stock split of its Class A common stock at a ratio of 1-for-20. The change is set to take effect at the start of trading on March 31, 2025, on the Nasdaq Capital Market, retaining the ticker symbol NXU. The announcement comes as the stock trades at $0.26, having declined 75% year-to-date, according to InvestingPro data.
The decision for the reverse split was made following approval from Nxu’s stockholders during a special meeting on February 11, 2025, which authorized the board of directors to select a split ratio between 1-for-5 and 1-for-20. The board determined the final ratio to be 1-for-20. As a result, every 20 shares of the issued and outstanding Class A common stock will be converted into one share. The par value per share will remain at $0.0001, and the number of authorized shares will not change. InvestingPro analysis shows the company maintains a healthy current ratio of 1.82, with cash reserves exceeding debt obligations, though it faces challenges with rapid cash burn.
This corporate action will also entail proportional adjustments to the per-share exercise prices and the number of shares issuable under all outstanding options, warrants, and equity awards. Nxu’s CEO, Mark Hanchett, stated that the reverse stock split is a strategic move to maintain NASDAQ compliance and support the company’s proposed merger with Verde Bioresins. He also mentioned the potential for an improved market price of the Class A common stock, which could enhance its marketability. The company’s financial metrics reveal significant challenges, with a negative EBITDA of $21.06 million in the last twelve months and revenue decline of 96.37%. For deeper insights into NXU’s valuation and 15 additional key ProTips, visit InvestingPro.
No fractional shares will be issued; stockholders who would have received a fractional share will be rounded up to the nearest whole share. Nxu has appointed Equiniti Trust Company, LLC as the exchange agent for the reverse stock split. Shareholders with shares in book-entry form or held in brokerage accounts need not take any action, while beneficial holders are advised to contact their respective banks, brokers, or custodians for any procedural inquiries. The company’s market capitalization currently stands at $11.72 million, with analysts forecasting continued challenges as reflected in an EPS forecast of -$0.35 for FY2025.
The announcement is based on a press release statement and includes forward-looking statements regarding expectations that the reverse stock split will enable Nxu to meet Nasdaq’s minimum bid price requirements and that the stock price may increase as a result. These statements are not guarantees of future performance and are subject to risks and uncertainties.
In other recent news, Nxu, Inc. announced the approval of a merger with Verde Bioresins, Inc. This merger is set to position the combined entity to enter the global plastics market with Verde’s PolyEarthylene bioresin, a sustainable alternative to traditional plastics. Pre-merger Verde stockholders will own approximately 95% of the combined company, with the merger valuing Verde at an estimated $306.9 million. Additionally, Nxu’s shareholders approved several significant proposals, including a reverse stock split and amendments to its Certificate of Incorporation, as part of preparations for rebranding as Verde Bioresins, Corp.
The company also appointed Erin Essenmacher as an independent director to its Board of Directors. Essenmacher will join the Audit Committee and will receive cash compensation as outlined in her Director Agreement. The merger is expected to close in March 2025, subject to customary closing conditions and approval for listing on the Nasdaq Capital Market. Lake Street Capital Markets, LLC provided a fairness opinion for the merger, with legal and financial advisory support from Snell & Wilmer L.L.P. and Roth Capital Partners, LLC.
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