Sonder shareholders will vote in a special meeting September 15 on whether to give the board approval to carry out a reverse stock split — with the split ratio subject to the board’s discretion.
The idea behind the move is to keep Sonder, which went public in a special purpose acquisition company deal on January 19 2022, trading on Nasdaq after getting notified that the run might end because the share price was trading below $1 for an extended duration.
An affirmative vote seems like a done deal. The board will decide whether the split will be “1-for-10, 1-for-15, 1-for-20 or 1-for-25” etc., Sonder said in a U.S. Securities and Exchange Commission filing Wednesday.
The split will in itself will not impact the company’s market cap, which stood at a mere $125 million after Wednesday’s close.
Atreides controls 9.2% of the vote, Fidelity 7.3%, Spark Capital 6.7%, and CEO Francis Davidson 5.3%.
Plenty of SPACs had their share prices plummet after their market debuts in the last couple of years, as stock markets tired of speedy growth with accompanying large losse,s and looked for profitability. Sonder is not expected to be profitable for full year 2023.