DecisionPoint Systems, Inc. , has completed the previously announced reverse stock split of its outstanding shares of common stock at a ratio of 1-for-2. The number of authorized shares will remain unchanged at 50 million shares. Trading of the company’s common stock on OTCQX will continue on a post-split basis, and the common stock began trading on a post-split basis on December 20, 2021, under the temporary trading symbol DPSID and under the new CUSIP number 24345A 507. The trading symbol is expected to revert back to DPSI on or about January 20, 2022.
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The company had previously disclosed that, on August 24, 2021, holders of a majority of the company’s outstanding shares of common stock had consented to a possible reverse stock split and granted the board the authority to determine the exact split ratio, within a specified range, at any time prior to June 30, 2022. Following that approval, the board determined to effect the reverse stock split at a ratio of 1-for-2. The company filed an amendment to its certificate of incorporation to effect the reverse stock split, which was accepted by the State of Delaware on December 13, 2021.
As a result of the reverse stock split, every two shares of DPSI common stock issued and outstanding were automatically combined into one share of DPSI common stock. This reduced the number of outstanding shares of DPSI common stock from approximately 14.0 million to approximately 7.0 million. Outstanding equity-based awards were proportionately adjusted. “Decision Point is pursuing an uplisting to a major exchange, hence the reverse split,” said Steve Smith, Chief Executive Officer.
No fractional shares were issued in connection with the reverse stock split. Stockholders that would hold a fractional share as a result of the reverse stock split will be rounded up to one share.
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The reverse stock split is intended to enable the company to help facilitate several important corporate objectives, including enabling the company to satisfy the minimum bid price requirement in connection with a potential application to a stock exchange.
The company’s transfer agent, Continental Stock and Transfer & Trust Company, is acting as an exchange agent for the reverse stock split. Stockholders holding pre-split shares electronically in book-entry form will not be required to take any action to receive post-split shares. Stockholders holding physical stock certificates will receive a letter of transmittal, requesting that the physical stock certificates be returned in order to exchange them for electronic book-entry shares in Direct Registration System (“DRS”) format. Stockholders holding common stock in “street name” will receive instructions from their brokers.
