© Reuters.
SAN DIEGO – Hempacco Co., Inc. (NASDAQ: HPCO), a company specializing in hemp manufacturing, announced a reverse stock split in a move to comply with Nasdaq’s minimum bid price requirement and avoid delisting.
The company’s Board of Directors approved the 1-for-10 reverse stock split on February 20, 2024, which will reduce the number of outstanding common shares from approximately 31.4 million to about 3.14 million.
The reverse stock split is scheduled to take effect at the market open on March 13, 2024. This action will result in every 10 existing shares of Hempacco common stock being combined into one new share. The company’s authorized shares of common stock will also decrease from 200 million to 20 million. The par value of the common stock will remain unchanged.
Hempacco’s decision for the reverse stock split was made under Section 78.207 of the Nevada Revised Statutes, with the primary goal of meeting the $1.00 minimum bid price requirement set by Nasdaq. The company anticipates that the increased market price per share post-split will help maintain its listing on the exchange. Transfer Online, the company’s transfer agent, will act as the exchange agent for the reverse stock split.
The company, which is a majority-owned subsidiary of Green Globe International Inc. (OTC Pink: GGII), focuses on disrupting the tobacco industry with its herb and hemp-based smokable products. Hempacco’s portfolio includes manufacturing smokables, rolling paper, cannabinoid sticks, and developing smokable technology.
Their brands include The Real Stuff functional smokables and rolling paper, Cheech and Chong Hemp Cigarettes, and Hemp Hop Smokables with Rick Ross, as well as a joint venture with Snoop Dogg for hemp-derived products.
This strategic financial maneuver is based on a press release statement from Hempacco and is intended to strengthen the company’s market position while ensuring compliance with trading regulations. The reverse stock split will not have any impact on the company’s authorized preferred stock.
Investors are advised that forward-looking statements were made in the press release, which are subject to various factors and uncertainties that could cause actual results to differ from those predicted. These statements are based on current expectations and projections about future events.
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