Katapult Announces 1-for-25 Reverse Stock Split of Common Stock
Common Stock Expected to Begin Trading on Reverse Split-Adjusted Basis on July 28, 2023
PLANO, Texas, July 11, 2023 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today announced that its Board of Directors has approved a 1-for 25 reverse stock split (the “Reverse Stock Split”) of Katapult’s common stock, par value $0.0001 per share (the “Common Stock”). The Reverse Stock Split was approved by Katapult’s stockholders at the Annual Meeting of Stockholders held virtually on June 6, 2023. The Reverse Stock Split will become effective at 5:01 p.m. Eastern Time on July 27, 2023, and the Common Stock will open for trading on The Nasdaq Stock Market (“Nasdaq”) on a reverse split-adjusted basis on July 28, 2023 under the existing trading symbol “KPLT.”
The new CUSIP number for the Common Stock following the Reverse Stock Split will be 485859 201. Katapult’s publicly traded warrants will continue to be traded on the Nasdaq under the symbol “KPLTW” and the CUSIP number for the warrants will remain unchanged.
At the effective time of the Reverse Stock Split, every 25 shares of Common Stock either issued and outstanding or held as treasury stock will be automatically reclassified into one new share of Common Stock. The par value per share of the Common Stock will remain unchanged at $0.0001.
As a result of the Reverse Stock Split, proportionate adjustments will be made to the number of shares of Common Stock underlying Katapult’s outstanding equity awards and the number of shares issuable under Katapult’s equity incentive plans and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards, as applicable.
In addition, proportionate adjustments will be made to Katapult’s outstanding warrants, resulting in: (i) each publicly traded warrant issued under the Warrant Agreement, dated October 31, 2019, becoming exercisable for 1/25th of a share of Common Stock at an exercise price of $287.50 per whole share; and (ii) the warrant under the Warrant to Purchase Stock, dated March 6, 2023, issued by Katapult to Midtown Madison Management LLC, becoming exercisable for up to 160,000 shares of Common Stock at an exercise price of $0.25 per share.
No fractional shares will be issued in connection with the Reverse Stock Split. Stockholders who would otherwise be entitled to receive fractional shares as a result of the Reverse Stock Split will be entitled to receive one full share of post-Reverse Stock Split Common Stock, in lieu of receiving such fractional shares.
Continental Stock Transfer & Trust Company is acting as transfer and exchange agent for the Reverse Stock Split. Registered stockholders who hold shares of Common Stock are not required to take any action to receive post-Reverse Stock Split shares of Common Stock. If a stockholder is entitled to post-Reverse Stock Split shares of Common Stock, a transaction statement will automatically be sent to the stockholder’s address of record indicating the number of shares (including fractional shares) of Common Stock held following the Reverse Stock Split. Stockholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such broker's particular processes, and will not be required to take any action in connection with the Reverse Stock Split.
Additional information about the Reverse Stock Split can be found in Katapult’s definitive proxy statement filed with the Securities and Exchange Commission (the “SEC”) on April 25, 2023, which is available free of charge at the SEC’s website, www.sec.gov, and on Katapult’s website at ir.katapultholdings.com.
About Katapult
Katapult is a technology driven lease-to-own platform that integrates with omni-channel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative, mobile app featuring Katapult Pay™, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity.
Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “anticipate,” “assume” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “seek,” “should,” “will,” “would,” or the negative of these terms or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such statements may include, but are not limited to, statements about the Reverse Stock Split and the timing thereof, as well as the trading of the Common Stock. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties that may cause actual results to differ significantly. Further information on factors that could cause Katapult’s actual results to differ materially from the results anticipated by Katapult’s forward-looking statements is included in the reports Katapult has filed with the U.S. Securities and Exchange Commission. Katapult does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.
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