Coda Octopus Group Inc. Implemented 1:14 Reverse Stock Split
Coda Octopus Group, Inc. (“Coda”) today announced that it has implemented a 1 for 14 reverse stock split of the Company’s common stock following approval by a majority of its stockholders.
The reverse stock split became effective January 11, 2017 and Coda’s common stock commenced trading at the open of business today on a split-adjusted basis on the OTC Bulletin Board. The CUSIP number for the common stock was changed to 19188U206.
As a result of the reverse stock split, every 14 shares of the issued and outstanding common stock were automatically converted into one share of common stock, without any change in the par value per share or in the number of authorized shares of common stock.
Any fractional shares resulting from the reverse stock split have been rounded up to the nearest whole share. Accordingly, no fractional shares will be issued in connection with the reverse stock split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the reverse stock split.
Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1 for 14 reverse stock split. Existing stockholders holding common stock certificates will have the adjustments made automatically upon transfer of their shares and no further action is required to be taken by the stockholders.
The total number of common shares that Coda is authorized to issue remains at 150,000,000. As of January 10, 2017, there were 127,415,895 shares of Coda`s common stock outstanding. Effecting the 1 for 14 reverse split reduces the amount of issued and outstanding shares of common stock to approximately 9,101,136 (the exact number may be affected by rounding). This reverse stock split action will also affect the number of shares into which the Senior Secured Convertible Debentures may be converted into.
Annmarie Gayle, the CEO, commented: “this reverse stock split is part of the ongoing progression of the Company. By completing the reverse split, combined with the strong growth illustrated in the Fiscal Year 2016 Preliminary Results (also released today), the Board strongly believes that Coda will gain broader access to, and interest from, the institutional investment community. Furthermore, we consider this reverse stock split one of the necessary steps towards up-listing onto the OTCQX and expect to make progress from there in the near future, thus putting in place the framework for increased shareholders’ value.”
About Coda Octopus Group, Inc.
Originally founded in 1994 as Coda Technologies, the Coda Octopus Group is now headquartered in Lakeland, Florida.
The Group consists of a Marine Products business located in Lakeland, Florida, Edinburgh, Scotland, Perth, Australia, and Bergen, Norway, and engineering businesses, Coda Octopus Colmek in Salt Lake City, Utah and Coda Octopus Martech in Weymouth, England. Each of the Group companies are technology innovators with a particularly high level of sonar expertise. The Group has facilities in Florida, Utah, the UK, Australia, and Norway.
Alongside providing bespoke engineering and development for defense applications one of the Group's key products is the patented Coda Echoscope® - the first real time 3D sub-sea sonar which is used in oil and gas, underwater construction, search and rescue operations and port and harbor security and constructions. The top end software which runs on the Echoscope® (Underwater Survey Explorer) is also proprietary to Coda Octopus. The Echoscope® is also at the heart of the Underwater Inspection System which is being adopted for port and harbor security, and other applications globally. We have a number of products which are based on our real time 3D technology (Echoscope®, Underwater Inspection System and Dimension® (the latter being a forward looking real time sonar targeted at ROV applications)).
With this patented revolutionizing sub-sea visualization capability, and the existing systems integration skills within Coda Octopus Colmek, Inc. and Coda Octopus Martech Ltd., the Coda Octopus Group believes it can become a world leading integrated sonar technology supplier.
Safe Harbor Statement
This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Coda Octopus Group plans, expects, should, believes, anticipates or words of similar import but all statements other than of historical fact could be deemed forward-looking statements. Stockholders, potential investors and other readers are cautioned not to place undue reliance on these forward-looking statements that are predictions and opinions based only on current information as of the date of this press release that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in registration statement on Form SB-2 and include, but are not limited to, market acceptance of CodaOctopus’ planned products and their level of sales, access to the capital necessary to finance and grow the business, ahighly competitive environment in the security field that includes numerous large and well established companies much larger than ours, and our ability successfully to deploy our technologies and products to meet the technical demands and market requirements of our customers. These forward-looking statements are only made as of the date of this press release and Coda Octopus Group does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Released January 11, 2017