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DENVER, CO - SOBR Safe, Inc. (NASDAQ:SOBR), a company specializing in transdermal alcohol detection technology, has announced a 1-for-10 reverse stock split of its common stock, set to take effect at the start of trading on Tuesday. The announcement comes as the company’s stock has experienced significant pressure, declining nearly 99% over the past year. According to InvestingPro data, the stock is currently trading at a significant discount to its Fair Value, with a market capitalization of just $430,000. The decision, which was approved by the board of directors, follows authorization from shareholders during the annual meeting on December 9, 2024.
The reverse stock split will consolidate every ten shares of issued and outstanding common stock into one share. As a result, the total number of SOBRsafe’s outstanding shares will decrease from roughly 15.16 million to approximately 1.52 million. Despite challenging market conditions, InvestingPro analysis reveals the company maintains a relatively low debt-to-equity ratio of 0.22, though its current ratio of 0.78 indicates potential liquidity challenges. InvestingPro subscribers have access to 15 additional key insights about SOBR’s financial health and market position. The company’s stock will continue to trade under the ticker symbol "SOBR" but will be assigned a new CUSIP number, 833592 405.
This corporate action aims to proportionately reduce the number of shares without altering each stockholder’s relative ownership percentage, except for minor adjustments due to the rounding up of fractional shares. No fractional shares will be issued; instead, shareholders who would otherwise receive a fraction of a share will be rounded up to the nearest whole number.
Stockholders with shares in electronic book-entry form will not need to take any action to receive their post-split shares. Those holding certificated shares will be contacted by Equiniti Trust Company, LLC, the appointed exchange agent and transfer agent for the reverse stock split, with instructions on exchanging their certificates. Shareholders using banks, brokers, or other nominees will see their positions automatically adjusted to reflect the reverse stock split.
The definitive proxy statement detailing the reverse stock split has been filed with the U.S. Securities and Exchange Commission and is available for review.
The press release statement from SOBRsafe also includes forward-looking statements regarding the company’s prospects, subject to risks and uncertainties. These statements are protected under the safe harbor provisions of relevant securities laws.
SOBRsafe’s technology offers a non-invasive method for detecting alcohol through the skin, providing solutions for various markets, including behavioral health and family law, without the need for breath, blood, or urine samples. The information regarding the reverse stock split is based on the company’s press release statement. Looking ahead, analysts tracked by InvestingPro anticipate sales growth in the current year, with revenue growth forecast at 23% for FY2024, though profitability remains a challenge. Discover comprehensive analysis and real-time updates on SOBR and thousands of other stocks with an InvestingPro subscription.
In other recent news, SOBR Safe, Inc. has partnered with Orbiit to launch an AI-based alcohol recovery program. This initiative combines SOBRsafe’s transdermal alcohol detection wristband, known as the SOBRsure™ Band, with Orbiit’s AI-driven engagement platform. The program aims to address the treatment gap for over 28 million individuals in the U.S. suffering from Alcohol Use Disorder (AUD) as of 2023. The partnership offers a non-invasive, data-driven approach to sobriety, blending continuous alcohol monitoring with personalized AI support. The program includes features such as SMS Accountability Messaging and structured micro-courses to reinforce recovery habits. The Orbiit Recovery Program, priced at $3,995, provides participants with the SOBRsure band and full access to Orbiit’s platform. The program is available online and via the SOBRsafe app, with plans to integrate SOBRsure data directly into the Orbiit platform in the future. This collaboration marks a significant development in alcohol recovery solutions by merging wearable technology with AI.
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