Allbirds, Inc. will proceed with a 1-for-20 reverse stock split of its outstanding shares of Class A Common Stock and Class B Common Stock following approval by its Board of Directors. The 1-for-20 ratio is within the range approved by stockholders at a special meeting of BIRD stockholders held on August 13, 2024.

The Reverse Stock Split intends to bring the company into compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market and become effective at 5 p.m. EDT today, September 4, 2024.

The company’s Class A Common Stock is expected to begin trading post-split at the market open on September 5, 2024, under the same symbol (BIRD) with the new CUSIP number 01675A208.

When the Reverse Stock Split goes into effect, every 20 shares of Allbirds Common Stock issued and outstanding will be combined automatically into one share of Common Stock.

The company said in a media release that the Reverse Stock Split will apply equally to all outstanding shares of Common Stock, and each stockholder will hold the same percentage of Common Stock outstanding immediately following the Reverse Stock Split, except for adjustments that could result from the treatment of fractional shares.

No fractional shares will be issued in connection with the Reverse Stock Split. Instead, holders of Common Stock will receive a cash payment, without interest, instead of any fractional shares. Additionally, all equity awards outstanding immediately before the Reverse Stock Split will be proportionately adjusted.

Computershare, Inc. is the exchange and transfer agent for the Reverse Stock Split.

Stockholders holding shares electronically in book-entry form are not required to take any action to receive post-split shares. The company does not have any outstanding certificated shares.

Stockholders owning shares through a bank, broker, or another nominee will have their positions adjusted to reflect the Reverse Stock Split and receive payment for any fractional shares by their respective banks, brokers or nominees particular processes.

Additional information about the Reverse Stock Split can be found in Allbirds’ definitive proxy statement (Form DEF 14A), which was filed with The U.S. Securities and Exchange Commission on June 28, 2024.

Image courtesy Allbirds