Lazydays’ Board of Directors approved a 1-for-30 reverse stock split to take effect at the close of trading today.
The RV dealer chain’s shareholders approved a proposal on July 3 to grant the board authorization to issue a reverse stock split.
The move is necessary because Lazydays has been at risk of being delisted from the NASDAQ stock exchange.
Companies whose shares trade below $1 for 30 consecutive business days are issued a warning by the stock exchange. They have 180 calendar days from the warning to raise their share price back above $1.
Lazydays’ share price fell below $1 on Dec. 5, 2024, and has not risen to or above $1 since. The company reached 30 consecutive business days under $1 in mid-January. An additional 180 days from that point would occur in mid-July, at which time the company would be delisted.
The dealer chain said its reverse stock split is primarily intended to increase the company’s per-share market price to regain compliance with NASDAQ’s minimum per-share bid price requirement.
Lazydays CEO Ron Fleming said, “This strategic initiative reflects our commitment to the long-term strength and stability of Lazydays. We are grateful for the continued support of our shareholders and remain focused on executing our operational turnaround plan.”
As a result of the reverse stock split, every 30 shares will be combined into one new share of common stock. The company will not issue fractional shares. Lazydays said the company will issue shareholders the fractions of a share necessary to round the shares up to the nearest whole number.
“The reverse stock split will not alter stockholders’ percentage ownership interest in the company,” Lazydays said, “except to the extent of any de minimis change due to rounding up.”
Stockholders who hold their shares in brokerage accounts or in “street name” will have their positions automatically adjusted, subject to each broker’s particular processes.
