Reflects a plan to strengthen capital structure for future growth and acquisitions
Los Angeles – Oct. 29, 2019 – OriginClear Inc. (OTCQB: OCLN), a leading provider of water treatment solutions, today announces that on Oct. 24 it implemented a 1-for-2000 reverse stock split. The number of shares outstanding of common stock has been reduced from about 6.2 billion to approximately 3.2 million. Investors should note that for 20 trading days after the reverse stock split, the ticker symbol of the company's common stock will change to OCLND.
“This reverse stock split is part of a plan to strengthen our capital structure for future growth and potential acquisitions,” said Riggs Eckelberry, OriginClear CEO.
In April, the Company reported in its 10-K annual filing that OriginClear’s revenue increased, while operating losses narrowed.
2018 revenue increased by 38% to $4,637,698 over 2017, and gross profit increased by 78% to $1,153,680, while margins improved by 6% overall. Operating losses narrowed by $1,231,703 to $4,062,351, a 23% improvement over 2017.
“While there can be no guarantee that we will complete our prospective acquisitions, we are confident that the year-over-year improvements in our existing businesses will continue,” added Eckelberry.
Join the CEO’s weekly telephone briefing each Thursday at 5 p.m. Pacific time/8 p.m. Eastern time. To register, please visit www.originclear.com/category/ceo-briefings. (Limit of 100 listeners.)
OriginClear’s new CUSIP number is 686228305, and its common stock will continue to trade on the OTCQB market under the symbol “OCLN.” For a period of 20 business days, a "D" will be placed at the end of the ticker symbol. The reverse stock split is expected to help maintain the company’s bid price listing requirements on the OTCQB exchange.
In the reverse stock split, every 2,000 shares of OriginClear’s common stock outstanding will automatically be changed and reclassified into one new share of common stock. No fractional shares will be issued in connection with the reverse stock split. Any fractional share of common stock that would otherwise have resulted from the reverse stock split will be rounded up to the nearest whole share.
The reverse stock split will affect all OriginClear stockholders uniformly and will not affect any stockholder’s percentage ownership interests in OriginClear except to the extent that the reverse stock split results in any stockholders owning only a fractional share. Additionally, all OriginClear convertible notes, convertible preferred stock, stock options, other equity awards and warrants outstanding immediately prior to the reverse stock split will be proportionately adjusted.
OriginClear’s transfer agent, Corporate Stock Transfer (“CST”), which is also acting as the exchange agent for the reverse split, will provide instructions to stockholders regarding the process for exchanging share certificates. Stockholders who hold their shares electronically at CST or in book-entry form at a brokerage firm need not take any action, as their shares will automatically be adjusted by their brokerage firm to reflect the reverse stock split. Beneficial holders may contact their bank, broker or nominee with any questions regarding the procedure of implementing the reverse stock split.