What You Should Know:
– Amwell (NYSE: AMWL), a leading provider of telehealth software, announced today a one-for-twenty (1-for-20) reverse stock split for all classes of its common stock.
– The stock split move aims to regain compliance with the New York Stock Exchange’s (NYSE) minimum share price requirement of $1.00.
Effective Date and Share Adjustments
The reverse stock split will become effective on July 10, 2024, at 5:00 p.m. EDT. Following the split, the number of Amwell’s outstanding shares will be significantly reduced:
- Class A common stock: Approximately 266 million shares to approximately 13.3 million shares.
- Class B common stock: Approximately 27.4 million shares to approximately 1.4 million shares.
- Class C common stock: Approximately 5.6 million shares to approximately 277,000 shares.
The company’s trading symbol (AMWL) will remain unchanged.
Financial Impact and Investor Considerations
Amwell emphasizes that the reverse stock split has no impact on the company’s overall market capitalization. However, it is designed to:
- Regain compliance with NYSE listing requirements.
- Broaden the appeal to potential investors seeking companies with a higher share price.
“While the reverse stock split is primarily driven by technical compliance with the NYSE minimum stock price requirement, we also hope to broaden the base of potential investors in Amwell as we strive for greater efficiencies, optimized cash flow and profitable growth, while remaining committed to enabling our clients to achieve their goals. The split also has no direct impact on our market capitalization,” said Robert Shepardson, Amwell CFO.
