Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Short-Term Rentals

Sonder’s 1-For-20 Reverse Stock Split to Become Effective Wednesday at Market Close

5 months ago

Sonder announced Tuesday that its 1-for-20 reverse stock split would become legally effective after market close Wednesday, and that its shares would start trading on that basis Thursday morning.

The move is geared to get the stock trading at more than $1 per share in compliance with Nasdaq rules.

“As of the Effective Time, every 20 shares of the Company‚Äôs issued and outstanding common stock and every 20 shares of its issued and outstanding special voting common stock will be combined into one issued and outstanding share of common stock or one issued and outstanding share of special voting common stock, respectively,” Sonder announced. “The total number of authorized shares of common stock will be reduced from 400,000,000 to 20,000,000, and the total number of authorized shares of special voting common stock will be reduced from 40,000,000 to 2,000,000.”

Sonder closed trading on Tuesday at $0.34 per share.

The reverse stock split doesn’t change Sonder’s market cap, which was $74.8 million at market close on Tuesday.

After receiving a notice from Nasdaq in April that its shares could be delisted because their price had dipped below $1 per share for 30 trading days in a row, Sonder announced in July would ask shareholders to approve a reverse stock split, which they did on Friday in a special meeting.

Sonder is among a bevy of SPACS, which saw its share prices tumble, some below $1 per share, after they went public.

The majority of Sonder’s listings are for short-term rentals, but hotel rooms are a growing portion of its portfolio.

It has an advantage in places like New York City, which just clamped down on host registrations for short-term rentals, because Sonder has many hotel licenses, and these are legal.

Short-Term Rentals

Vacasa Announces Reverse Stock Split

6 months ago

Property manager Vacasa announced its intent to conduct a one-for-20 reverse stock split that’s geared to get its share price higher than $1 per share and therefore to be continued to trade on Nasdaq.

A vacation rental that Vacasa manages. Source: Vacasa

Its shares were trading for $0.48 midday on Friday.

The reverse stock split, authorized by the Vacasa board of directors September 1, would go into effect before midnight October 2, the company said. Vacasa’s split-adjusted shares would start trading on the stock market the next day.

Several companies, including Sonder, which went public via SPACs and have seen their share prices dip below $1 have similarly announced reverse stock splits.