Katapult Holdings, Inc., a leading e-commerce-focused financial technology company, has recently announced a 1-for-25 reverse stock split of its common stock. The decision was approved by Katapult’s Board of Directors and its stockholders at the Annual Meeting of Stockholders held virtually on June 6, 2023.
The reverse stock split will see every 25 shares of Katapult’s common stock reclassified into one new share of common stock. This move aims to increase the value of each individual share, potentially attracting more investors and enhancing liquidity in the market.
The reverse stock split will become effective at 5:01 p.m. Eastern Time on July 27, 2023. As of July 28, 2023, the common stock will open for trading on The Nasdaq Stock Market on a reverse split-adjusted basis under the existing trading symbol KPLT.
To reflect the reverse stock split, proportionate adjustments will be made to the number of shares of common stock underlying Katapult’s outstanding equity awards and equity incentive plans, as well as existing agreements. The exercise, grant, and acquisition prices of these equity awards will also be adjusted accordingly.
Furthermore, the reverse stock split will result in adjustments to Katapult’s outstanding warrants. For example, publicly traded warrants issued under the Warrant Agreement dated October 31, 2019, will become exercisable for 1/25th of a share of common stock at an exercise price of $287.50 per whole share.
It’s important to note that no fractional shares will be issued as a result of the reverse stock split. Stockholders who are entitled to fractional shares will instead receive one full share of post-reverse stock split common stock.
Continental Stock Transfer & Trust Company will act as the transfer and exchange agent for the reverse stock split. Registered stockholders holding shares of common stock are not required to take any action to receive post-reverse stock split shares. Similarly, stockholders who own shares through a broker or nominee will have their positions automatically adjusted.
For additional information about the reverse stock split, interested parties can refer to Katapult’s definitive proxy statement filed with the Securities and Exchange Commission (SEC) on April 25, 2023. The statement is accessible free of charge on the SEC’s website, www.sec.gov, as well as on Katapult’s website at ir.katapultholdings.com.
Katapult is a technology-driven lease-to-own platform that empowers underserved U.S. non-prime consumers to purchase everyday durable goods through its integration with omni-channel retailers and e-commerce platforms. The company’s innovative mobile app and point-of-sale integrations simplify and streamline the financing process for consumers who may have difficulty accessing traditional loans.
As Katapult takes this significant step with the reverse stock split, it aims to enhance shareholder value and position itself for future growth in the e-commerce and financial technology sectors. By increasing the value of its common stock, the company signals its confidence in its business model and its commitment to providing fair and dignified payment solutions to underserved consumers.
Forward-looking statements in this press release reflect Katapult’s current expectations and involve various risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated include market conditions and the trading of the common stock. Katapult does not assume any obligation to update or revise its forward-looking statements based on new developments or otherwise.
Overall, the reverse stock split represents a strategic move by Katapult to strengthen its position in the market and enhance shareholder value. The company remains focused on driving innovation in the lease-to-own industry and providing accessible financing solutions for non-prime consumers.
