- OriginClear 1-for-2000 reverse stock split designed to prepare company for future growth, acquisitions
- Announcement comes after OCLN posted positive financial numbers in SEC 10-K annual filing
- CEO confident that year-over-year improvements in existing businesses will continue
OriginClear Inc. (OTC: OCLND), an advanced player in the decentralized water revolution, has announced the implementation of a 1-for-2000 reverse stock split as part of a solid financial plan designed to strengthen capital structure for future growth and acquisitions (http://nnw.fm/GnSX9). OriginClear is well-positioned in the water treatment sector, which is anticipated by some to become a trillion-dollar industry by 2020. As water scarcity looms, noted as “one of the three global systemic risks of highest concern” by The World Economic Forum, increasing numbers of businesses are looking beyond municipalities for ways to take their location’s water-treatment into their own hands. OriginClear is ready to fill this void with its onsite, point-of-use water-treatment systems which it has been pioneering the last several years, and its reverse stock split is another achievement on its path to empowering companies around the world to achieve self-reliant water independence.
The company’s reverse stock split is anticipated to help maintain the company’s bid price listing requirements on the OTCQB Venture Exchange. Implemented on October 24, the stock split resulted in the number of OriginClear outstanding shares of common stock decreasing from an estimated 6.2 billion to about 3.2 million (http://nnw.fm/05A9d). Also, as a result of the reverse stock split, the company’s common stock ticker symbol will be OCLND for 20 trading days following the implementation.
“This reverse stock split is part of a plan to strengthen our capital structure for future growth and potential acquisitions,” Riggs Eckelberry, OriginClear CEO, stated in a news release.
This strategic move comes after the company posted positive financial numbers in its April SEC 10-K annual filing. In that filing, the company reported increased revenue with narrowing operating losses. Specifically, 2018 revenue increased by 38 percent to $4,637,698 over 2017, and gross profit increased by 78 percent to $1,153,680, while margins improved by six percent overall. Operating losses narrowed by $1,231,703 to $4,062,351, a 23 percent improvement over 2017 numbers.
“While there can be no guarantee that we will complete our prospective acquisitions, we are confident that the year-over-year improvements in our existing businesses will continue,” said Eckelberry.
As part of the reverse stock split, every 2,000 shares of OriginClear’s common stock outstanding will be reclassified into one new share of common stock, with no fractional shares issued in connection with the reverse stock split. The effect of the reverse stock split on existing OriginClear stockholders will be uniform across the board, with stockholders’ percentage ownership interests in the company remaining the same, except to the extent that the reverse stock split results in fractional shares. Any fractional share of common stock from the reverse stock split will be rounded up to the nearest whole share.
Additionally, all OCLN convertible notes, convertible preferred stock, stock options, other equity awards and warrants outstanding immediately prior to the reverse stock split will be proportionately adjusted.
OriginClear is a leading provider of water-treatment solutions. The company offers breakthrough water-treatment and conveyance products that effectively improve the quality of water by returning it to its original and clear condition. The company’s stated mission is to empower this global self-reliant water movement with its Modular Water Systems (TM) (http://nnw.fm/2BCm8), advanced water treatment and conveyance products that enable water independence and help make clean water available for all. OriginClear provides innovative water-treatment systems that not only assist companies in increasing their operating efficiency and asset value but also help those companies meet new environmental and social governance (ESG) standards.
For more information, visit the company’s website at www.OriginClear.com
NOTE TO INVESTORS: The latest news and updates relating to OCLN are available in the company’s newsroom at http://nnw.fm/OCLN
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