Crown Electrokinetics Loses Over Quarter Of Its Market Cap After Shareholders Approve Reverse Stock Split: Retail’s Divided
Crown Electrokinetics’ board now has the discretion to enact a reverse stock split with a ratio of not less than 1:2, going all the way up to 1:200.
FollowShares of Crown Electrokinetics Corp. (CRKN) lost more than a quarter of its market capitalization in Wednesday’s pre-market session after the company’s shareholders approved a 1:200 reverse stock split.
Crown had called for a special meeting of shareholders on Jan. 14, and one of the key items on the agenda was to obtain authorization for a reverse stock split of up one share for every 200 shares issued.
Shareholders also voted on the proposal for an independent registered public accounting firm. The company noted that all proposals were approved during the meeting.
The reverse stock split authorization allows Crown Electrokinetics’ board to enact the split with a minimum ratio of 1:2, going all the way up to 1:200.
“Maintaining our Nasdaq listing ensures access to the capital markets, which is needed to advance our mission in delivering innovative infrastructure solutions that benefit both communities and the environment,” said Doug Croxall, CEO of Crown Electrokinetics.
Croxall had earlier expressed anguish over the company’s market value not reflecting its success potential.
“We share in your frustration that our market value, trading at approximately our current cash value, does not yet reflect either Crown’s recent achievements or its immense future potential,” he said.
Retail sentiment on Stocktwits was divided at the time of writing.
However, not everyone is sold on the bullish sentiment.
In the past six months, CRKN share price has fallen by more than 97%, while its one-year performance has been worse, with a decline of over 99%.
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