#United States #Houston #Nauticus Robotics #Reverse Stock Split #KITT

Nauticus Robotics Implements 1-for-9 Reverse Stock Split

Nauticus Robotics, Inc., trading under the symbol NASDAQ: KITT, recently declared its intention to initiate a 1-for-9 reverse stock split of its common stock. This decision is aimed at bolstering the share price to meet the minimum bid price requirement set by The Nasdaq Capital Market.

What is a Reverse Stock Split?

A reverse stock split is a financial maneuver where a company reduces the total number of its outstanding shares, while proportionately increasing the individual share price. In practical terms, under the new ratio, every nine shares that a shareholder owns will be converted into a single share. Consequently, the share price will be adjusted accordingly. For instance, if the stock was previously priced at $1, post-split, it would be approximately $9 per share.

Objectives Behind the Split

The main motivation for Nauticus to conduct this reverse split lies in its need to increase its stock price to remain compliant with Nasdaq’s regulations. A higher share price is not only necessary for compliance but is also expected to enhance the stock's appeal to a wider array of investors, particularly institutional categories, which often set minimum price thresholds for investments. This action aims to enhance liquidity, instill investor confidence, and strengthen the company’s financial standing.

Implications for Current Investors

Interestingly, the reverse split will not alter the overall ownership percentages for existing shareholders. Each nine shares that investors currently hold will be combined into one share, which means their total equity in Nauticus remains unchanged. Fractional shares that result from this adjustment will be rounded up to the nearest whole share, ensuring that shareholders do not lose their stake due to non-whole share conversions.

Timeline for Implementation

The reverse stock split is scheduled to take effect on September 5, 2025. To facilitate this, all trading of Nauticus common stock will be temporarily suspended on the evening of September 4. Post-split trading is anticipated to recommence on September 5, 2025, under the new stock designation. This strategic timing will be crucial for a smooth transition.

Shareholder Actions

For those investors holding their shares in an electronic format, no immediate action is required to obtain their post-split shares. On the other hand, shareholders with certified shares will receive detailed instructions from Continental Stock Transfer and Trust, which has been appointed as the transfer agent responsible for managing the split transaction.

Conclusion

Nauticus Robotics is pioneering in the development of autonomous robots tailored for the ocean industry, emphasizing cutting-edge technology that encompasses AI and advanced sensors. As the company positions itself for the financial implications this reverse stock split entails, keeping a keen eye on market reactions will be essential. As Nauticus continues its quest for innovation, the upcoming split reflects its commitment to aligning its share price with industry requirements, ensuring a robust platform for future growth and investment opportunities. For further details about this corporate action, investors are encouraged to review the company’s definitive proxy statement filed with the U.S. Securities and Exchange Commission. Understanding these developments is vital for current and prospective investors as Nauticus navigates the complex waters of the stock market.