Hippo plans to complete a reverse stock split
Hippo plans to file a proxy statement with the SEC in connection with a special meeting of stockholders to be held on August 31, 2022.
The proxy statement will include a proposal for a reverse stock split at a ratio in the range of 1-for-20 to 1-for-30 and the reduction of the number of authorized shares of capital stock of the company by a corresponding proportion.
The reverse stock split to be proposed to Hippo stockholders is intended to resolve the issue raised in a non-compliance notice Hippo received from the NYSE on July 19, 2022 due to the average closing price of the company’s common stock being less than $1.00 over a consecutive 30 trading-day period.
The notification has no immediate effect on the listing or trading of Hippo’s common stock on the NYSE.
Hippo can regain compliance at any time within the six-month period following receipt of the NYSE notice if on the last trading day of any calendar month during the cure period the company has a closing price of at least $1.00 per share and an average closing price of at least $1.00 per share over the 30-trading day period ending on the last trading day of that month.
Bottom Line: Hippo’s stock is currently trading at around $0.83 per share; down 93% from its public debut.