Foxo Technologies Carries Out Reverse Stock Division
FOXO Technologies, a publicly-traded company listed on the NYSE American (NYSE:FOXO), has announced its approval of a 1-for-1.99 reverse stock split of its class A common stock. The primary purpose of this move is to ensure compliance with the NYSE American's continued listing requirements, which mandate a stock price above $0.10 per share.
The reverse stock split, scheduled to become effective on July 27, 2025, will see every 1.99 shares of common stock issued and outstanding at the effective time combined into one share of common stock. This action will temporarily double the stock price while reducing the number of outstanding shares. The par value per share remains unchanged at $0.0001.
The reverse stock split will not significantly impact FOXO Technologies' business operations, as it is primarily a technical measure to meet listing requirements. However, it does have potential implications for investors and the market.
Firstly, the reverse stock split ensures that FOXO Technologies remains listed on the NYSE American, providing continuity for its shareholders. Secondly, the reduction in outstanding shares creates headroom within the authorized share limit, potentially facilitating future capital raises by allowing the issuance of more shares if needed.
However, the approval also removes conversion caps, which could lead to substantial dilution if preferred shares and convertible notes are converted into common stock, often at a discount. This aspect of the reverse stock split may be a cause for concern for some investors.
As of the press release date, FOXO Technologies' stock was down -3.93% after hours, trading at $0.1197. It is important to note that the press release does not contain any new financial information for FOXO Technologies. The common stock will trade on a split-adjusted basis on the NYSE American under the same symbol "FOXO" from July 28, 2025, and will trade under a new CUSIP number after the reverse stock split.
The company has not announced the appointment of an interim CFO, as per the information provided.
The reverse stock split, while primarily a technical measure for FOXO Technologies to meet NYSE American's listing requirements, can have potential implications for investors. This action may provide continuity for shareholders by ensuring the company remains listed, but it could also lead to substantial dilution if preferred shares and convertible notes are converted into common stock.
The reduction in outstanding shares created by the reverse stock split may grant FOXO Technologies headroom within the authorized share limit, potentially facilitating future capital raises by allowing the issuance of more shares if necessary. However, this potential benefit should be weighed against the possibility of dilution due to the removal of conversion caps.
