CleanSpark (CLSK) Prepares for Nasdaq Uplisting; Approves Stock Split to Meet Price Requirements
SALT LAKE CITY, Dec. 10, 2019 (GLOBE NEWSWIRE) -- CleanSpark, Inc. (OTCQB: CLSK), a software company with advanced engineering, software and controls for innovative microgrid and distributed energy resource management systems, announced today that its Board of Directors and the Financial Industry Regulatory Authority (FINRA) have approved a 1-for-10 reverse stock split of the Company’s issued and outstanding common stock. The reverse stock split is anticipated to be effective prior to the stock market opening on December 11, 2019. With the successful implementation of the reverse stock split and provided that the Company’s common stock meets the Nasdaq minimum bid price requirement, the Company believes it will meet the final requirements for listing CleanSpark’s common stock on The Nasdaq Capital Market within the coming weeks.
“We have elected to effectuate a reverse stock split to allow CleanSpark to meet the listing requirements of The Nasdaq Capital Market,” stated Zach Bradford, CEO of CleanSpark. “Our plan to move to a national exchange reflects our recent success and momentum in growing our energy software and SaaS solutions for applications in the growing distributed energy generation market. We believe that listing on Nasdaq should help broaden our shareholder base, increase appeal to institutional investors and provide shareholders with better liquidity.”
Before any listing of the Company’s common stock on The Nasdaq Capital Market can occur, Nasdaq will need to give final approval of the Company’s listing application. The Company believes it currently meets all listing requirements for listing on The Nasdaq Capital Market, with the exception of its share price. Following the completion of the reverse stock split, Nasdaq has indicated to the Company that it will monitor trading for several days to ensure the Company’s common stock maintains key thresholds, including a minimum bid price. Notwithstanding the foregoing, no assurance can be given that the Company’s common stock will ultimately be listed on The Nasdaq Capital Market.
The Board of Directors approved the reverse split without shareholder approval under applicable Nevada law (Nevada Revised Statutes (NRS) Section 78.207). Each shareholder’s percentage ownership interest in CleanSpark and the proportional voting power will remain unchanged after the reverse stock split, except for minimal changes due to rounding. In addition, the rights and privileges of the holders of CleanSpark’s common stock are unaffected by the reverse stock split.