Ryvyl Inc (NASDAQ:RVYL) shares plunged nearly 30% in premarket trading on Thursday after shareholders voted to approve a reverse stock split, a move aimed at helping the company retain its Nasdaq listing.
At the company’s annual meeting held on December 15, investors authorized a reverse split in a range between 1-for-20 and 1-for-50. Shareholders also approved an increase in authorized common stock to 500 million shares from 100 million, as Ryvyl works to address ongoing listing challenges.
The vote follows a notice received on December 11, when Nasdaq issued a Staff Delisting Determination letter citing the company’s failure to meet the exchange’s minimum bid price requirement. Ryvyl said it expects the approved reverse split to resolve the issue and has appealed the decision to the Nasdaq Hearings Panel. The company said it anticipates returning to compliance “in the coming weeks.”
Ryvyl has been taking steps to preserve its Nasdaq listing ahead of its proposed merger with RTB Digital, Inc., also known as Roundtable. In October, Roundtable invested $6.5 million in Ryvyl through a preferred stock purchase, helping the company regain compliance with Nasdaq’s stockholder equity standards.
“Today’s stockholder approval reflects the strong support from our stockholders for the actions associated with the Roundtable merger and their continued support along the way,” said George Oliva, Interim Chief Executive Officer and Chief Financial Officer of RYVYL.
Roundtable, which describes itself as a “Web3-powered digital media platform for major media clients,” entered into a definitive merger agreement with Ryvyl on September 28. The privately held company has previously secured $33 million in financing.