Paris-listed Capital B plans a reverse stock split that would lift its quoted share price without changing the company’s value.
Capital B, the Paris-listed Bitcoin treasury company formerly known as The Blockchain Group, plans to combine every 10 existing shares into one new share on Sept. 8, according to a Monday regulatory filing.
The reverse split will reduce the number of outstanding shares to about 30.1 million from 300.7 million. The new shares will have a par value of €0.8 each, up from €0.08 for the existing stock, per the filing.
The company called the move a “purely technical exchange transaction” and said it was meant to “open the Company’s shares to a broader universe of investors.” Amid the news, Capital B’s shares soared 0.97% on the Euronext Growth Paris exchange.
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What Shareholders Need to Know
The process will run from Aug. 6 to Sept. 7. Shareholders with 10, 20, 30 or any other multiple of 10 shares won’t need to do anything. Those with leftover shares can buy or sell stock before the deadline; otherwise, their broker will sell the leftover portion and begin sending them the cash on Sept. 14.
The current shares will trade for the last time on Sept. 7. The consolidated shares will replace them the following day and receive a new ISIN, the identification code exchanges use to distinguish one stock from another.
Capital B will also pause conversions of its bonds and exercises of its warrants from Aug. 17 through Sept. 10. Once the split is complete, bond conversion prices will be multiplied by 10, while warrant ratios and the number of free shares still vesting will be divided by 10.
A Higher Price, No New Value
Capital B shares trade near €0.48 and are down roughly 40% this year, per Google Finance data. At that price, the consolidation puts each new share near €4.8 if the company’s market value stays the same.
Capital B holds 3,139 BTC▲$62,630.00 on its balance sheet, according to its latest treasury update. The higher share price may make the stock accessible to more investors, but the split doesn’t change the amount of Bitcoin or company ownership behind each shareholder’s total position.
Read more: Bitcoin Treasury Capital B Raises $17.8M Toward 1% BTC Supply Goal
