Volato Group announces 1-for-25 reverse stock split

In a recent 8-K filing, Volato Group, Inc., a Delaware-based nonscheduled air transportation company trading at $0.19 per share, announced a reverse stock split of its Class A common stock at a ratio of 1-for-25. The board of directors approved the action on Monday, with the change expected to take effect at the start of business on February 24, 2025. According to InvestingPro data, the company's stock has declined 94.2% over the past year, with multiple financial health indicators suggesting significant challenges ahead.

The reverse stock split was authorized by Volato's stockholders on October 3, 2024, granting the board discretion to amend the company's Certificate of Incorporation accordingly. The decision aims to ensure compliance with the NYSE American LLC's per-share price requirements, where the company's common stock is listed under the ticker symbol SOAR. With a market capitalization of just $5.23 million and an EBITDA of -$39.21 million in the last twelve months, the company faces significant financial challenges.

As a result of the reverse split, the total number of outstanding shares of common stock will be reduced from approximately 46.1 million to about 1.8 million, subject to the rounding of fractional shares. Stockholders holding shares not evenly divisible by 25 will receive one whole share in lieu of a fractional share, eliminating the issuance of fractional shares and the need for any cash or other consideration for fractional shares.

Additionally, all options, warrants, and other convertible securities will be adjusted in accordance with the reverse split. This includes modifying the number of shares into which the securities are exercisable or convertible and the exercise or conversion prices.

The company's trading symbol will remain unchanged post-reverse stock split, and the new CUSIP number for the common stock will be 74349W302. Stockholders who hold their shares electronically through brokerage firms will see the reverse stock split reflected automatically in their accounts.

In other events, the filing disclosed a Settlement Agreement with Sunpeak Holdings Corporation, in which Sunpeak agreed to purchase and settle certain outstanding payables of Volato with designated vendors, totaling approximately $4.7 million, in exchange for shares of Volato's common stock. However, a portion of the claims, amounting to $1.2 million, is expected to be settled directly by Volato through cash payments with the vendors, diverging from the original terms of the Settlement Agreement. InvestingPro analysis reveals that the company's current ratio stands at 0.66, indicating potential challenges in meeting short-term obligations. Get access to 13 additional ProTips and comprehensive financial metrics with InvestingPro.

The 8-K filing also contains forward-looking statements regarding the anticipated effects and benefits of the reverse stock split, cautioning that such statements are subject to risks and uncertainties that could cause actual outcomes to differ from expectations. With a weak Financial Health Score of 1.27 according to InvestingPro, investors should carefully monitor the company's performance metrics and financial indicators.

This news is based on a press release statement and reflects the company's current plans and expectations as of February 14, 2025.

In other recent news, Volato Group, Inc. has been making significant strides in the aviation industry. The company recently announced the development of a patent-pending technology that allows aircraft to mine Bitcoin during flight, utilizing excess electricity from normal operations and unused capacity. This innovative technology is optimized for high-altitude performance, promising greater efficiency than traditional mining setups. Volato's initiative aligns with the industry's push towards sustainability, as the revenue from Bitcoin mining could potentially fund the purchase of Sustainable Aviation Fuel or carbon offset programs.

In other developments, Volato Group confirmed the resignation of its Chief Commercial Officer, Nicholas Cooper, effective November 30, 2024. The company clarified that Cooper's decision was due to personal reasons and not related to any conflict with the company's operations or practices. The details of any transitional arrangements or potential candidates for the position remain undisclosed. These are the recent developments within the company, providing investors with the latest updates on Volato's operations and executive team changes.

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