Harbor Custom Development Inc. (NASDAQ:HCDI) has announced it will effect a 1-for-20 reverse stock split of its issued and outstanding shares of common stock in a move that is aimed at maintaining compliance with the Nasdaq’s minimum bid price requirement.
The company noted that stockholders voted to authorize the reverse stock split in a range of 1-for-3 to 1-for-25 on February 17, 2023, and its directors voted to authorize the exact ratio for the reverse split of 1-for-20 on February 27.
Its common stock will begin trading on a post-reverse split basis on the Nasdaq Capital Market under the existing symbol ‘HCDI’ on March 6. The new CUSIP number for the common stock following the reverse split will be 41150T306, Harbor added.
READ: Harbor Custom Development restructures loan with Bank United
“Completion of the reverse split was important to maintain compliance with the minimum bid price requirement of the Nasdaq Capital Market’s continued listing standards,” Harbor president and CEO Sterling Griffin said in a statement.
“The reverse split also broadens our opportunities to potentially attract investment capital, strategic partners, and project financing.”
Habor said the reverse split will affect all issued and outstanding shares of common stock. All outstanding restricted stock awards, warrants, options, and the Series A convertible preferred stock and other securities entitling their holders to purchase or otherwise receive shares of common stock will be adjusted as a result of the reverse split, as required by their respective terms, it added. The number of shares available to be awarded under the company’s incentive plans will also be appropriately adjusted.
Following the reverse split, Habor said the par value of the common stock will remain unchanged at no par value per share. The reverse split will not change the authorized number of shares of common stock or preferred stock.
No fractional shares will be issued in connection with the reverse split; stockholders who would otherwise be entitled to receive a fractional share will instead receive one whole share of common stock, the company said.
“The reverse split combined with the restructuring of the Bank United loan agreement provide a critical foundation necessary for the company to achieve its objectives,” Harbor’s chief operating officer Jeff Habersetzer concluded.
Harbor Custom Development is involved in all aspects of land development, including acquisition, entitlements, construction, home building, marketing, and managing projects. The company is focused on Western Washington's Puget Sound region, Sacramento in California, Austin in Texas, and Punta Gorda in Florida.
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