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CleanSpark prepares for Nasdaq uplisting, approves stock split to meet price requirements

Published: 07:59 11 Dec 2019 EST

Cleanspark, Inc. - CleanSpark prepares for Nasdaq uplisting, approves stock split to meet price requirements
As a result of the reverse stock split, every 10 shares will be exchanged for one share, with all fractional shares being rounded up to the nearest whole share

CleanSpark Inc (OTCMKTS:CLSK), an advanced energy software and control technology company, said Wednesday that the company’s board and the Financial Industry Regulatory Authority (FINRA) approved a 1-for-10 reverse stock split of the company’s stock. 

In a statement, the Bountiful, Utah-based company said the reverse stock split is expected to be effective prior to the stock market opening on December 11. With the successful implementation of the reverse stock split, the company believes it will meet the final requirements for listing CleanSpark’s stock on the technology-laden Nasdaq. 

“We have elected to effectuate a reverse stock split to allow CleanSpark to meet the listing requirements of the Nasdaq Capital Market,” said CleanSpark CEO Zach Bradford in a statement. 

READ: CleanSpark shares surge on $627K energy storage contract in Costa Rica

The CleanSpark boss said the planned listing on Nasdaq would help broaden the company’s shareholder base, “increase appeal” to institutional investors and provide shareholders with better liquidity.

“Our plan to move to a national exchange reflects our recent success and momentum in growing our energy software and software-as-a-service (SaaS) solutions for applications in the growing distributed energy generation market,” added Bradford.

CleanSpark's software, mPluse and mVSO enable a microgrid to be scaled and widely used by agricultural, commercial, industrial enterprises as well as government agencies.

Before listing on Nasdaq, the exchange will need to grant final approval to the company’s listing application. The company believes it currently meets all listing requirements for the Nasdaq, with the exception of its share price. Following the completion of the reverse stock split, Nasdaq has indicated that it will monitor trading for several days to ensure the company’s stock maintains key thresholds, including a minimum bid price.

The board approved the reverse split without shareholder approval under applicable Nevada law. 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.

As a result of the reverse stock split, every 10 shares will be exchanged for one share, with all fractional shares being rounded up to the nearest whole share. The reverse stock split will reduce the number of shares from around 47.7 million pre-split shares to approximately 4.8 million post-split shares. The reverse stock split also proportionally reduces the authorized common stock from 200 million down to 20 million.

The company said “proportional adjustments” will also be made to CleanSpark’s outstanding warrants and convertible debt.

CleanSpark develops software to help companies become more energy efficient. The company's services include intelligent energy monitoring and controls, as well as micro-grid consulting and implementation services. The company, which was founded in 1987, operates on a software-as-a-service distribution model.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive  

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