Charlie’s Holdings Inc (OTCMKTS:CHUC) was down 11.70% Tuesday after the company announced a reverse split. Reverse splits tend not to be good news for current shareholders.
Market Reaction
On Tuesday, CHUC stock ended lower by 11.63% to $0.0038 with more than 73 million shares traded hands for the session, compared to its average volume of 13.27 million shares.
Major Trigger:
Charlie’s Holdings Announces Reverse Stock Split
Key Highlights:
- CHUC announced that the Company received all the necessary regulatory approvals from the Financial Industry Regulatory Authority (“FINRA”) to effectuate a reverse split of its issued and outstanding, and authorized common stock (the “Shares”) on a 1 for 100 basis (the “Split”). The Split was unanimously approved by the Company’s board of directors.
- The Split will be effective Wednesday, June 16, 2021. In accordance with FINRA’s procedures for reverse stock splits, the Shares will trade on a post-split basis under the temporary symbol “CHUCD” for 20 trading days to signify that the reverse stock split has occurred, after which time the symbol will revert back to “CHUC”. Any fractional shares resulting from the Split will be rounded up to the nearest whole post-split share.
- As of June 14, 2021 there were 20,316,393,494 shares of Charlie’s Holdings, Inc. common stock issued and outstanding. After the Split, the number of shares issued and outstanding will be reduced to approximately 203,163,935.
){kind=link}