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SAN DIEGO – Hemp manufacturing company Hempco, Inc. (NASDAQ: HPCO) announced a reverse stock split to comply with Nasdaq's minimum bid price requirements and avoid delisting.
On February 20, 2024, the company's board of directors approved a 10-for-1 reverse stock split that will reduce the number of outstanding common shares from approximately 31.4 million shares to approximately 3.14 million shares.
The reverse stock split is expected to become effective at market open on March 13, 2024. This action consolidates every 10 existing shares of Hempacco common stock into one new share of Hempacco's common stock. The company's authorized common stock will also be reduced from 200 million shares to 20 million shares. The par value of the common stock will not change.
Henpaco's decision to reverse stock split was made pursuant to Nevada Revised Statutes Section 78.207 for the primary purpose of meeting the $1.00 minimum bid price requirement established by Nasdaq. The company expects that the increase in the market price per share after the split will help maintain its listing on the exchange. Transfer Online, the company's transfer agent, will act as the exchange agent for the reverse stock split.
The company is a majority-owned subsidiary of Green Globe International Inc. (OTC Pink: GGII) and is focused on disrupting the tobacco industry with herbal and hemp-based smokable products. Hempacco's portfolio includes the production of smokables, rolling papers, cannabinoid sticks, and the development of smokable technology.
The company's brands include The Real Stuff™ functional smokables and rolling papers, Cheech and Chong Hemp Cigarettes, and Hemp Hop Smokables with Rick Ross. It also includes his joint venture with Snoop Dogg on hemp-based products.
This strategic financial strategy is based on Henpaco's press release statement and is aimed at strengthening the company's market position while ensuring compliance with trading regulations. The reverse stock split does not affect the company's certified preferred stock.
Investors are cautioned that this press release contains forward-looking statements and is subject to a variety of factors and uncertainties that could cause actual results to differ from expectations. These statements are based on current expectations and projections about future events.
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