On their third try, shareholders of ASAP — formerly known as Waitr — have approved a reverse stock split, a move that will consolidate the available shares in the market in an attempt to raise the Lafayette delivery company’s depressed stock price.
The tally was finalized Thursday, with 51.4% of all possible votes in favor of the reverse stock split, according to filings with the Securities and Exchange Commission. Shareholders could cast one vote per owned share.
Now that shareholders have greenlighted the move, ASAP’s board will decide the exact ratio of the reverse stock split. Shareholders OK’d a ratio range of anywhere between 1-for-5 — meaning every five shares becomes one share — and 1-for-20.
ASAP, which rebranded in August following a trademark dispute over its previous name, first attempted to enact a reverse stock split months ago. Shareholders rejected that request in June.
The company held another shareholder vote Oct. 6. However, SEC filings say ASAP adjourned the meeting after only 48.5% of all possible votes supported the reverse stock split. The company scheduled another vote for Thursday, which ultimately proved successful.
Nasdaq first notified ASAP in January that its stock price was low enough to warrant a possible delisting. The delivery company had until July to fix the issue.
In response, ASAP filed a request to move from the from the Nasdaq Global Select Market to the Nasdaq Capital Market. Companies on the Nasdaq Capital Market have lower market capitalization levels than companies on other Nasdaq tiers.
ASAP’s request was approved in July. As a result, the company was given until Jan. 23 to improve the price and had to enact a reverse stock split, which in theory should consolidate shares and raise their price.
ASAP’s stock price was trading at 14 cents per share as of noon Friday.
The flagging share price hasn’t been the company’s only financial drag. ASAP’s parent company, Waitr Holdings Inc., posted an $11.7 million loss in the second quarter of this year amid inflation and stiff competition.
However, in response to its financial performance, ASAP has shifted toward a broader business model that will see the company deliver alcohol, apparel, sporting goods, auto parts and more beyond food. It has also shed some outstanding debt.