ATLANTA – Trust Stamp (NASDAQ:IDAI), a $15.81 million market cap provider of AI-based identity verification services, has announced a reverse stock split that will become effective for trading on January 6, 2025. The decision follows a series of actions aimed at ensuring compliance with Nasdaq’s minimum bid price requirement. According to InvestingPro data, the stock has shown high price volatility, with shares currently trading at $0.57.
The reverse split process began on September 20, 2024, with notification to Nasdaq. In response, Nasdaq granted the company an extension on November 4, 2024 to meet the $1 closing bid rule. A substantial majority of shareholders, 96%, voted in favor of the reverse demerger during the Extraordinary General Meeting (EGM) held on 18 November 2024.
Despite a brief price spike that saw the stock close at $1.20 on December 30, 2024, the stock’s momentum stalled and prices fell in the following days. But the stock has fallen by 22.67% since the beginning of the year. InvestingPro data show an increase of 53.26% in the past six months. CEO Gareth N. Genner noted that while the company experienced several price spikes, they were not sustained long enough to meet Nasdaq’s requirement of ten consecutive trading days with a closing bid above $1.
The January 2, 2025 reverse split announcement was made in the context of this volatility, with the board aiming to position the share price above the penny stock classification. Genner expressed his belief that the reverse split is aligned with the long-term interests of shareholders and can attract a wider range of investors, including family offices and investment institutions.
Trust Stamp is preparing for its Annual General Meeting (AGM) on 29 January 2025, where it will provide updates on the company’s positioning for the year and detail partnerships and initiatives. The company sees significant opportunities as it addresses global market challenges related to quantum computing, deepfakes, cybersecurity breaches, ransomware attacks and national security.
According to a press release, Trust Stamp, which calls itself a Privacy-First Identity Company™, operates in sectors such as banking, finance and government, with a presence in North America, Europe, Asia and Africa. Financial metrics from InvestingPro indicate challenging conditions, with revenue falling 51.92% over the last twelve months and a current ratio of 0.6. InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics for Trust Stamp.
In other recent news, Trust Stamp and T Stamp Inc. they announced a key development. Shareholders of T Stamp Inc. approved proposals for a reverse stock split, the issuance of new shares and warrants and the sale of approximately 4.6 million shares of Class A Common Stock to DQI Holdings, Inc. Trust Stamp declared a reverse stock 1 for 15 split of its common stock, with the goal of meeting Nasdaq’s minimum offering price requirements.
T Stamp Inc. has experienced significant changes in its leadership, with the appointment of Andrew Scott Francis, current Chief Technology Officer, to the Board of Directors, and the announced departures of CFO Alexander Valdes and Executive Vice President of Mergers and Acquisitions Joshua Allen. Trust Stamp CEO Gareth N. Genner hinted at upcoming announcements detailing new strategic partnerships, revenue streams and reduced costs.
T Stamp Inc. regained compliance with Nasdaq’s equity requirements through strategic transactions, including debt-to-equity share issuance, a licensing agreement with Boumarang Inc., and the sale and execution of warrants with institutional investors. Trust Stamp, meanwhile, faces financial challenges, with short-term liabilities exceeding liquid assets.
The US Patent and Trademark Office has granted a patent for technology to encode personal information for identification and entered into a strategic alliance with Qenta Inc. to advance its digital identity technology. Trust Stamp reported revenue of $2.16 million in the last twelve months, with a gross profit margin of 51.35%. These are recent developments shaping both companies.
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