NXT-ID Inc (NASDAQ:NXTD) has made the announcement that both independent proxy advisory firms, Glass Lewis & Co. and Institutional Shareholder Services (ISS) have strongly recommended that NXT-ID shareholders vote in favor of the proposed reverse stock split of NXT-ID’s common stock, and a reverse split of its Series C Preferred Stock at the company’s shareholders meeting. It is scheduled to be held on October 15th, 2021.
Glass Lewis stated that it is in the best interest of NXT-ID to decrease number of shares of common stock outstanding. This will proportionally raise per-share price of the common stock (it closed at $0.39 on September 20, 2021). If the stock price is higher, it can build on investor interest, attract and retain employees, and improve the company’s ability to raise additional capital through equity offerings. ISS agrees that reverse stock split is imperative to maintain the listing of NXT-IDs common stock on the NASDAQ Capital Market.
If the reverse stock split proposal isn’t approved, the company’s common stock will get delisted, which negatively impacts market valuation and shareholder liquidity. All shareholders on record as of September 16, 2021 can vote. The Board of Directors shares the opinion of Glass Lewis and ISS, so they have urged all shareholders to vote in favor of the proposals.
