What were the specific terms of Newegg's 20-to-1 reverse stock split effective April 7, 2025?

Newegg Commerce, Inc. (NASDAQ: NEGG) completed a 20-to-1 reverse stock split, also referred to as a share combination, which became effective on April 7, 2025.

Key terms of the reverse stock split included:

• Ratio: Every twenty (20) shares of Newegg's common stock were combined into one (1) new share.
• Effective Date: The reverse stock split took effect on April 7, 2025, with shares beginning to trade on a split-adjusted basis at the open of business on that day.
• Purpose: The primary goal of the share combination was to enable Newegg to meet Nasdaq's minimum bid price per share requirements and maintain its listing. The company had previously received a deficiency notice from Nasdaq regarding its bid price.
• Fractional Shares: Shareholders who would have received fractional shares as a result of the split were instead compensated with a cash payment.
• Shareholder Impact: The reverse stock split was designed to affect all shareholders proportionately, meaning it did not alter any shareholder's percentage ownership in the company, apart from the cash settlement for fractional shares.
• CUSIP and Trading Symbol: The company's common shares began trading under a new CUSIP number but continued to trade on the Nasdaq Capital Market under the existing "NEGG" symbol.
• Adjustments: Options and other equity awards were also proportionately adjusted to reflect the new share structure. The par value per share was adjusted from $0.021848 to $0.43696.