Cuentas, Inc. (NASDAQ:CUEN)(NASDAQ:CUENW) (“Cuentas” or the “Company”), a leading fintech provider of mobile financial app and payment solutions, today announced that the company’s Board of Directors has approved a reverse stock split of its shares of common stock at a ratio of 1 for 13 (the “Reverse Stock Split”). The Reverse Stock Split will become effective at 12:01 a.m. Eastern time on March 24, 2023 and the Company’s common stock will open for trading on The Nasdaq Capital Market on a post-split basis on March 24, 2023 under the Company’s existing trading symbol “CUEN”. At such time, the Company’s common stock will also commence trading under a new CUSIP number 229794300.
We expect that the Reverse Stock Split will increase the market price per share of the Company’s common stock, bringing the Company into compliance with listing requirements for The Nasdaq Capital Market.
At the effective time of the Reverse Stock Split, every thirteen (13) shares of Cuentas common stock issued and outstanding will be combined into one (1) share of common stock issued and outstanding, with no change to the par value of $0.001 per share. This will reduce the Company’s outstanding common stock from approximately 27.1 million shares to approximately 2.1 million shares. Fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share, and all currently issued shares of common stock held by a shareholder shall be aggregated for the purpose of determining whether the Reverse Stock Split would result in the issuance of a fractional share. The Reverse Stock Split will also result in an adjustment to the number of shares of common stock issuable upon exercise of the Company’s outstanding equity awards and warrants and a corresponding adjustment to the exercise prices of such securities. The actual number of warrants issued and outstanding will not be adjusted as a result of the Reverse Stock Split (i.e., each one (1) warrant will be exercisable into one-thirteenth of a share of common stock following the Reverse Stock Split).
