HIVE Blockchain (HIVE) Stock: 1-For-5 Reverse Split Goes Into Effect

By Amit Chowdhry ● May 24, 2022
  • A 1-for-5 reverse stock split of HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) has gone into effect. These are the details.

HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) announced that it will be proceeding with the consolidation of its common shares on the basis of 5 pre-Consolidation Common Shares for 1 post-Consolidation Common Shares.

The common shares will commence trading on the TSX Venture Exchange and Nasdaq on a post-Consolidation basis effective at the market opening today. Prior to the share consolidation, the company had 411,209,923 common shares issued and outstanding. And on a post-consolidation basis, the company will have approximately 82,241,984 common shares issued and outstanding.

The company will not be changing its name or stock symbols in connection with the consolidation. And the completion of the consolidation is subject to the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange, and pursuant to the Business Corporations Act (British Columbia) and the articles of the company. The shareholder approval of the consolidation is not required.

No fractional Common Shares will be issued as a result of the consolidation. Any fractional interest in common shares that is less than 0.5 of a common share resulting from the consolidation will be rounded down to the nearest whole common share, and any fractional interest in common shares that is equal to or greater than 0.5 of a common share will be rounded up to the nearest whole common share.

KEY QUOTES:

“HIVE has accomplished an incredible amount over the past few years. Today we’re one of the most profitable and fastest-growing crypto miners in the world.”

“Despite our record profitability, HIVE shares trade at around a 2.2 P/E ratio as of May 23, 2022. This share consolidation will allow us to remove some of the penny stock stigma and allow us to engage more institutional investors.”

“We believe that eventually the market will recognize HIVE’s value proposition, but at the same time we accept that further volatility may be in the cards. Either way, we’ll continue on with our work. We encourage all shareholders to watch our May 19, 2022, Corporate Update webcast from last week here where we discuss our progress and the benefits to come from the share consolidation.”

– Frank Holmes, Executive Chairman of HIVE

“Our goal is to efficiently allocate shareholder capital, and we think our track record shows that. Look at our Bitcoin mining operations, which have all been built or acquired over the past 2 years, and now account for roughly 2/3rds of our revenue.”

“HIVE remains highly profitable, and this consolidation should create more institutional visibility for our shares.”

– Darcy Daubaras, CFO of HIVE

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.