Grove Collaborative to Implement Reverse Stock Split
by Marlena Haddad on 2023-05-25 at 4:51pm

Grove Collaborative (NYSE: GROV), which completed a merger transaction with Virgin Group II in June 2022, announced this afternoon that it will implement a 1-for-5 reverse split of its common stock.

The company gained shareholder approval for the reverse stock split at a special meeting held yesterday and will be effective after market close on June 5. GROV’s common stock will trade on a post-split basis when the market opens on June 6.

At the effective time, every five issued and outstanding shares of GROV’s common stock will be converted into one share of common stock. The reverse stock split will reduce the number of shares of class A common stock issued and outstanding from approximately 129 million to 26 million, and the number of shares of class B common stock issued and outstanding from approximately 50 million to 10 million.

As a result of the reverse stock split, all outstanding public warrants to purchase GROV’s class A common stock will also be proportionately adjusted. Correspondingly, the exercise price per share of class A common stock attributable to such warrants prior to the reverse stock split has been proportionately increased from $11.50 to $57.50.

Additionally, the number of shares of GROV’s class A common stock subject to the public warrants will be decreased by five times, to an aggregate of 1,610,000 shares.

Grove Collaborative intends to use this reverse stock split to increase the market price per share of common stock to enhance its ability to regain compliance with the NYSE and to improve the marketability and liquidity of its common stock. In December 2022, just six months after the company went public, Grove received a notice from the NYSE that it was no longer in compliance with the stock exchange’s continued listing standards around minimum average share price.

If the price of GROV’s class A common stock remains above $1 per share for 30 trading days following the effective time of the reverse stock split, then Grove will be deemed to have regained compliance with the NYSE.

Recent Posts
by Kristi Marvin on 2023-12-02 at 11:45am

Terms Tracker for the Week Ending December 1, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. For the most part, this was a quiet week for filings being that it followed the Thanksgiving holiday. Ideally, bankers, lawyers and teams got a...

by Marlena Haddad on 2023-12-01 at 5:39pm

Aimei Health Technology Co., Ltd (NASDAQ: AFJKU) announced the pricing of its $60 million IPO this evening. Its units are expected to begin trading on the Nasdaq under the symbol “AFJKU” on Monday, December 4, 2023. After the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to...

by Marlena Haddad on 2023-12-01 at 4:43pm

PROOF Acquisition Corp I (NYSE: PACI) announced this afternoon that it has closed its business combination with private aviation company Volato after shareholders approved the deal at a meeting on November 28. In total, including previous shareholder votes, shareholders opted to redeem an aggregate of 99.93% of PACI’s trust, leaving it with less than $215,000...

by Marlena Haddad on 2023-12-01 at 9:34am

Adit EdTech (NYSE: ADEX) announced this morning that its shareholders have approved its business combination with bitcoin self-mining company Griid Infrastructure at a special meeting held yesterday, November 30. A total of 8,520,710 shares of common stock, representing approximately 95.7% of the outstanding shares entitled to vote, were present at the meeting, constituting a quorum...

by Nicholas Alan Clayton on 2023-12-01 at 7:49am

At the SPAC of Dawn There had been hopes that this week would take one world conflict off the board, but combat has resumed in the Middle East as other eyes are likely to be fixed on new Fed comments today. The fighting in Gaza continues to not appear to have appreciable affects on the...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved