Testing Vertical’s second VX-4 prototype is going according to plan, but as the saying goes, ‘no bucks, no Buck Rogers’. Photo: Vertical Aerospace
Vertical Aerospace has announced a one-for-ten (1:10) reverse share split of its issued and unissued ordinary shares (the “ordinary shares”) and preferred shares, par value $0.0001 per share (the “Reverse Share Split”) as it seeks to return to compliance with New York Stock Exchange (NTSE) minimum share price requirements. The market appears to have little love for the company, and it has struggled to stay above the US$1 threshold since its floatation. Indeed, the last time the company’s shares traded above the $1 mark was in December 2021, shortly after its launch on the NYSE. In fact, at the time of the share split announcement, the stock was trading at US$o.010 (although it had rallied to US$0.029 before closing last night at US$0.021)
The Reverse Share Split will become effective at 4:01 p.m. Eastern Time on 20 September 2024 (the “Effective Date”). The Company’s ordinary shares will begin trading on a split-adjusted basis when the New York Stock Exchange (“NYSE”) opens for trading on Monday, 23 September 2024, the first trading day following the Effective Date. The question is, will the split have the desired effect both in terms of pricing and NYSE compliance and, as important if not more, raise additional and badly needed capital?
Vertical Aerospace is not alone in struggling with exchange compliance. Fighting to secure compliance, this time on the NASDAQ exchange, is Lilium, whose shares have been trading consistently below the US$1 mark for some time. It may be that it, too, sees a reverse share split as the solution to its compliance and funding woes should the rumoured search for a suitor fail to bear fruit.
