Vision Marine enacts reverse stock split to meet Nasdaq rules

Published 27/03/2025, 15:10
Vision Marine enacts reverse stock split to meet Nasdaq rules

MONTREAL - Vision Marine Technologies Inc. (NASDAQ:VMAR), specializing in electric marine propulsion, announced a reverse stock split that will take effect at market open on March 31, 2025. With the stock trading at $0.61 and down 99% over the past year according to InvestingPro data, the board approved a 10-for-1 split, consolidating every ten shares into one. This move aims to boost the share price to comply with Nasdaq’s minimum bid price rule.

Currently, Vision Marine has approximately 10.4 million shares outstanding, with a market capitalization of $5.38 million. Post-split, this will decrease to around 1.04 million shares, with adjustments for fractional shares. The reverse split will not alter the number of authorized shares or the par value. The company maintains strong liquidity with a current ratio of 2.88 and more cash than debt on its balance sheet.

Shareholders with fractional interests will receive one whole share instead of a fractional one. Vstock Transfer LLC serves as the exchange agent, and shareholders with electronic or nominee-held shares need not take action; adjustments will be made automatically.

This strategic step is in response to Nasdaq Listing Rule 5550(a)(2), which requires a minimum $1.00 bid price per share. Vision Marine’s reverse stock split is expected to help maintain compliance with this rule.

This information is based on a press release statement from Vision Marine Technologies Inc.

In other recent news, Vision Marine Technologies Inc. has made several strategic announcements that could impact its operations and financial outlook. The company has secured approximately $5.8 million through a private placement, which includes common shares and warrants. The proceeds are intended for working capital and general corporate purposes, highlighting Vision Marine’s ongoing commitment to innovation in electric marine propulsion. Additionally, Vision Marine has filed a patent application for an Outboard Power Control Unit designed to enhance electric boating efficiency and reliability, further strengthening its E-Motion™ propulsion line.

In a separate development, the company has initiated a stock repurchase program authorized by its Board of Directors, allowing for the buyback of up to 5% of its common shares. This move is aimed at reinforcing shareholder value amidst current market challenges. Vision Marine also announced the appointment of finance expert Pierre-Yves Terrisse to its Board of Directors, a strategic decision expected to bolster its financial strategy and market expansion. Furthermore, the company filed a patent for Battery Authentication Encryption Technology to improve security and data analysis in its powertrain systems. These advancements reflect Vision Marine’s focus on sustainable and secure electric propulsion solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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