Real Good Food Stock Up After Reverse Stock Split: Retail's Bullish
According to a company statement, the stock split consists of its Class A common stock, par value $0.0001, and Class B common stock, par value $0.0001
FollowShares of The Real Good Food Company, Inc. ($RGF) were up 24.62% on Monday after the health and wellness foods company announced a 12-to-1 reverse stock split, sparking retail chatter on Stocktwits.
The company’s shares were down 3.21% in the after-hours trading session on Monday.
According to a company statement, the stock split consists of its Class A common stock, par value $0.0001, and Class B common stock, par value $0.0001, set to become effective at 5:00 pm ET on January 3.
As of the effective time, every 12 shares of the company's issued and outstanding common stock will be combined and reclassified into one share of common stock.
The stock split affects all holders of its common stock uniformly, the company said, adding that and each stockholder will hold the same percentage of common stock outstanding immediately following the reverse stock split as that stockholder held immediately prior to the reverse stock split.
Its Class A common stock will trade on a split-adjusted basis starting on January 6, the company said in a statement. The Class A common stock will continue to trade under the existing ticker symbol “RGF,” with the new CUSIP 75601G 307.
The move was implemented for the purposes of regaining compliance with the minimum bid price requirement of the Nasdaq Listing Rule 5550(a)(2), said the statement.
Retail sentiment on Stocktwits appeared bullish after the announcement.
Real Good Foods makes health and wellness frozen and refrigerated foods for breakfast, lunch, dinner, and snacks that are available in over 16,000 stores nationwide.
Real Good Foods stock is down 79.82% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.
