The Real Good Food Company Announces 12-to-1 Reverse Stock Split
Introduction
CHERRY HILL, N.J., Dec. 30, 2024 – The Real Good Food Company, Inc. (Nasdaq: RGF), also known as Real Good Foods, revealed exciting news today that its Board of Directors has given the green light on a 12-to-1 reverse stock split. The Company, a prominent player in the health and wellness frozen and refrigerated foods sector, disclosed that the reverse stock split will apply to its Class A common stock and Class B common stock, with an effective start time of 5:00 pm Eastern Time on January 3, 2025.
Details of the Reverse Stock Split
The reverse stock split will see the Company’s Common Stock undergo a significant turning point, with the Class A common stock trading on a split-adjusted basis starting January 6, 2025. The decision to implement the reverse stock split was sealed following approval from the Company’s stockholders at a special meeting held on December 20, 2024. The primary objective behind this move is to regain compliance with Nasdaq Listing Rule 5550(a)(2), specifically the minimum bid price requirement.
Implications of the Reverse Stock Split
For investors and stakeholders of Real Good Foods, the reverse stock split signifies a strategic maneuver aimed at fortifying the Company’s financial standing and market position. By adhering to Nasdaq’s listing regulations, Real Good Foods is safeguarding its credibility and appeal to potential investors, thereby bolstering investor confidence in the Company’s growth trajectory.
Effects on Individuals
As an individual investor, the reverse stock split by Real Good Foods may impact your investment portfolio. The adjusted trading price post-split could lead to a change in the valuation of your holdings in Real Good Foods. It is advisable to consult with a financial advisor to comprehend the implications of this corporate decision on your investment strategy.
Global Ramifications
On a global scale, the reverse stock split by Real Good Foods serves as a testament to the evolving dynamics of the health and wellness food industry. As a renowned player in the frozen and refrigerated foods sector, Real Good Foods’ strategic move could potentially influence market trends and investor sentiment within the broader food industry, shaping future developments and strategies adopted by industry competitors.
Conclusion
In conclusion, the Real Good Food Company’s decision to undergo a 12-to-1 reverse stock split underscores its commitment to upholding regulatory standards and fostering sustainable growth in the health and wellness food sector. Investors and stakeholders alike are encouraged to stay informed about the implications of this reverse stock split on their investment portfolios, while simultaneously recognizing the wider industry implications of this strategic move by Real Good Foods.
