MIAMI, FL and LONDON, UK / ACCESSWIRE / July 12, 2024 / MGO Global Inc. (Nasdaq:MGOL), a digitally-native, lifestyle brand portfolio company ("MGO," "MGO Global" or the "Company"), today announced that pursuant to approval by MGO's Board of Directors (the "Board") on February 22, 2024 and the consent of the holders of a majority of the outstanding shares voting capital stock of the Company as disclosed on an Information Statement on Schedule 14C filed with the U.S. Securities and Exchange Commission on March 11, 2024, the Board has determined to implement a reverse stock split ("Reverse Stock Split") of the Company's common stock at a ratio of 1:10 that will become effective on July 18, 2024 (the "Effective Date").
MGO is undertaking the Reverse Stock Split with the objective of regaining compliance with Nasdaq's $1.00 minimum bid price requirement. On the Effective Date, the number of issued and outstanding shares of MGO's common stock will be reduced from 20,967,737 to approximately 2,096,774. As a result of the Reverse Stock Split, there will be approximately 911,373 shares in the public float. No fractional shares will be issued in connection with the Reverse Stock Split, but fractions shall be rounded up to the nearest whole share.
MGO's common stock will trade on a split-adjusted basis under a new CUSIP number when the market opens on July 18, 2024, and will continue to trade under its existing symbol "MGOL."
The Reverse Stock Split will affect all issued and outstanding shares of common stock and securities convertible into common stock. All outstanding options, restricted stock awards and any other securities entitling their holders to purchase or otherwise receive shares of common stock will be adjusted as a result of the Reverse Stock Split by decreasing the number of shares acquirable pursuant to the ratio of 1:10 and increasing the exercise or conversion price, as applicable, by the same ratio, as required by the terms of such security. The number of shares available to be awarded under the Company's equity incentive plan will also be proportionately adjusted.
Immediately after the Reverse Stock Split, each stockholder's percentage ownership interest in MGO and proportional voting power will remain virtually unchanged, except for minor changes and adjustments that will result from rounding fractional shares into whole shares, as applicable. The rights and privileges of the holders of common stock will not be affected by the Reverse Stock Split.
The Company's transfer agent, Transhare Corporation ("Transhare"), will serve as exchange agent for the Reverse Stock Split and will provide instructions to stockholders of record regarding the Reverse Stock Split. Unless otherwise required by the stockholder, Transhare will issue all of the post-split shares in paperless, book entry form; and unless otherwise requested by the stockholder, Transhare will hold the shares in an account set up for the stockholder. All book entry or other electronic positions representing issued and outstanding shares of common stock will be automatically adjusted for the Reverse Stock Split. Those stockholders holding MGO's common stock in "street name" will receive instructions from their brokers. For assistance from Transhare, please call 303-662-1112.
About MGO Global Inc.
MGO Global Inc. is actively engaged in building a portfolio of independent, digitally native, lifestyle brands, which are unique and differentiated, yet all defined by distinctive, high-quality products and a shared commitment to delivering high-touch customer experiences across its ecommerce and wholesale channels. MGO is currently comprised of two business units: Americana Liberty, which markets a growing, high-end line of thoughtfully curated home and outdoor products, including Stand Flagpoles; and MGO Digital, which leverages data analytics, advanced technology-enabled marketing and our leadership's industry relationships and expertise to identify, incubate and introduce to market new, authentic lifestyle brand concepts.
For more information on MGO, please visit www.mgoglobalinc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its businesses and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
MGO Global Inc.
Dodi Handy, Director of Communications
Telephone: 407-960-4636
Email: ir@mgoteam.com
SOURCE: MGO Global
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