Source: investing, 19/11/2024, Tuesday
Ontario, Calif. – Nature’s Miracle Holding Inc. (NASDAQ: NMHI), a specialist in vertical farming technology, has announced a 1-30 equity reverse stock consolidation of its common stock, scheduled to take effect November 21, 2024. This amendment aims to raise the offer price of the company’s shares to comply with the minimum offer price requirements on the global NASDAQ market.
With reverse stock aggregation, the company will convert every 30 outstanding common stock shares into one share. This consolidation will reduce the number of outstanding shares proportionately and will not affect the relative ownership ratios of shareholders, except for minor adjustments due to fractional shares rounding at the participant level.
Continental Stock Transfer & Trust Company, the Company’s transfer agent, will manage the exchange for reverse stock aggregation. Registered shareholders will receive information detailing changes in their holdings after consolidation. Those who own shares through banks, brokers or other representatives will see their accounts adjusted automatically and do not need to take any additional action.
taking into account the operations of their respective institutions.
Nature’s Miracle operates in the Controlled Environment (CEA) agriculture industry, providing equipment and services for greenhouses and indoor farming environments through its subsidiaries visiontech Group, Inc. and Hydroman, Inc. The company offers a range of hydroponic products to farmers in North America.
The reverse stock aggregation serves as a strategic move to ensure that Nature’s Miracle meets the Nasdaq’s minimum offer price rule of $1.00 per share and remains listed on the exchange. The company’s new CUSIP number after the reverse stock aggregation will be 63903P 209.
This news is based on a press release from Nature’s Miracle Holding Inc. It aims to inform shareholders and the market of upcoming changes in the company’s share structure.
In other recent news, Nature’s Miracle Holdings Inc. Terms for an IPO aimed at raising about $3 million. D. Boral Capital LLC manages the offering, which is expected to close around November 12, 2024. In a strategic move, the company also announced the renaming of its subsidiary, Hydroman Inc., to Hydroman Electric Corporation, signaling a shift towards the electric vehicle sector.
On the financial front, Nature’s Miracle entered into several agreements for convertible promissory notes totaling $680,460 and reduced trade payable debt by $2.1 million through an agreement with Visiontech Group, Inc.
and Uninet Global Inc. The company also secured a $5.1 million sales agreement with What Rebates LLC and a $2.4 million purchase order from a major California indoor farmer for the grow lights of its Efinity brand. These agreements are expected to significantly boost the company’s revenues in late 2024.
However, the company faces the prospect of delisting from Nasdaq due to non-compliance with market capitalization requirements. Nature’s Miracle plans to appeal against this decision and submit a plan to restore compliance. In other developments, the company’s chief operating officer, Darren Carpenter, moved into an advisory role.
and an exclusive distribution agreement was entered into with Vaighai Agro Products Ltd. To distribute Gro-Med Coco Coir Substrate products throughout the United States. However, both parties mutually terminated the plans to merge with Agrify Corporation. These are the latest developments in the company’s operations.
Nature’s Miracle Holding Inc. decision. Carrying out a reverse consolidation of shares amid difficult financial conditions. According to Investing Pro data, the company’s revenue for the past twelve months through the third quarter of 2024 was $9.99 million, with an alarming decline in revenue growth of 3.43% over the same period. This context underscores the urgency of the company’s move to maintain its listing on the Nasdaq.
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Investing Pro’s advice highlights that the NMHI share price has fallen significantly over the past year.
with a total year-to-date price return of -99.1% according to the latest data. This dramatic decline likely contributed to the need for reverse aggregation to meet the Nasdaq’s minimum supply requirements.
The company’s financial situation appears to be risky.
with Investing Pro data showing a negative gross profit of $0.51 million and operating income of -$8.26 million for the past twelve months through the third quarter of 2024. One of Investing Pro’s advice indicates that NMHI has weak gross profit margins.
which is evidenced by the reported gross profit margin of -5.13.%.
These insights provide a critical context for understanding a company’s decision to pursue reverse stock aggregation. Investors interested in a more comprehensive analysis have access to additional tips from Investing Pro, with 5 additional NMHI tips available on the Investing Pro platform.
