CareMax, Inc. (NASDAQ: CMAX; CMAXW) (“CareMax” or the
“Company”), a leading technology-enabled value-based care delivery
system, today announced that the Company’s Board of Directors (the
“Board”) has approved a 1-for-30 reverse stock split (the “Reverse
Stock Split”) of its Class A common stock, par value $0.0001 per
share (the “Class A Common Stock”), that is expected to become
effective on Wednesday, January 31, 2024 at 11:59 p.m. Eastern Time
(the “Effective Time”). The Class A Common Stock will continue to
trade on the Nasdaq Stock Market (“Nasdaq”) under the symbol “CMAX”
and is expected to begin trading on a split-adjusted basis
commencing upon market open on February 1, 2024. The new CUSIP
number for the Class A Common Stock following the Reverse Stock
Split will be 14171W202. The Company’s publicly traded warrants
will continue to be traded on the Nasdaq under the symbol “CMAXW.”
However, under the terms of the applicable warrant agreement, the
number of shares of Class A Common Stock issuable on exercise of
each warrant will be proportionately decreased.
The Reverse Stock Split was approved by the Company’s
stockholders at the special meeting of stockholders held on January
23, 2024, where the Company’s stockholders approved the amendment
to the Company’s Third Amended and Restated Certificate of
Incorporation (the “Charter”) to effect the Reverse Stock Split, to
be effected in the Board’s discretion within approved parameters.
Subsequently, the Board approved the Reverse Stock Split and filing
of the amendment to the Charter to effect the Reverse Stock Split,
at the ratio of 1-for-30, as of the Effective Time. The Reverse
Stock Split is intended for CareMax to regain compliance with the
minimum bid price requirement of $1.00 per share of Class A Common
Stock for continued listing on Nasdaq (the “Minimum Bid Price
Requirement”).
At the effective time of the Reverse Stock Split, every 30
shares of the Company’s issued and outstanding Class A Common Stock
will be automatically converted into one issued and outstanding
share of Class A Common Stock without any change in the par value
of $0.0001 per share. The Reverse Stock Split will reduce the
number of issued and outstanding shares of the Company's Class A
Common Stock from approximately 112.4 million shares to
approximately 3.7 million shares. There will also be a
corresponding reduction in the authorized number of shares of the
Company’s common stock. Proportional adjustments will be made to
the number of shares of Class A Common Stock underlying the
Company’s outstanding equity awards, the public warrants trading on
Nasdaq under the existing symbol “CMAXW,” private warrants and the
number of shares issuable under its equity incentive plan and other
existing agreements, as well as the exercise or conversion price,
as applicable.
No fractional shares will be issued in connection with the
Reverse Stock Split. In lieu of issuing fractional shares,
stockholders of record who otherwise would be entitled to receive
fractional shares will be entitled to rounding up of the fractional
share to the nearest whole number.
INFORMATION FOR CMAX STOCKHOLDERS
The Company’s transfer agent, Continental Stock Transfer &
Trust Company, will provide information to stockholders regarding
their stock ownership following the Reverse Stock Split.
Stockholders holding their shares in book-entry form or through a
bank, broker or other nominee do not need to take any action in
connection with the Reverse Stock Split. Their accounts will be
automatically adjusted to reflect the number of shares owned.
Beneficial holders are encouraged to contact their bank, broker or
other nominee with any procedural questions.
Additional information about the Reverse Stock Split and the
related Charter amendment can be found in the Company’s definitive
proxy statement filed by the Company with the United States
Securities and Exchange Commission (the “SEC”) on December 21,
2023. This document is publicly accessible on the SEC’s website at
www.sec.gov.
About CareMax
Founded in 2011, CareMax is a value-based care delivery system
that utilizes a proprietary technology-enabled platform and
multi-specialty, whole person health model to deliver
comprehensive, preventative and coordinated care for its members.
With over 200,000 Medicare Value-Based Care Members across 10
states, and fully integrated, Five-Star Quality rated health and
wellness centers, CareMax is redefining healthcare across the
country by reducing costs, improving overall outcomes and promoting
health equity for seniors. Learn more at www.caremax.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995,
as amended. These forward-looking statements include statements
regarding the expected timing and implementation of the Reverse
Stock Split and the commencement of trading of our post-split Class
A Common Stock and our ability to maintain compliance with Nasdaq's
continued listing requirements. Words such as "anticipate,"
"believe," "budget," "contemplate," "continue," "could,"
"envision," "estimate," "expect," "guidance," "indicate," "intend,"
"may," "might," "plan," "possibly," "potential," "predict,"
"probably," "pro forma," "project," "seek," "should," "target," or
"will," or the negative or other variations thereof, and similar
words or phrases or comparable terminology, are intended to
identify forward-looking statements. These forward-looking
statements reflect the Company’s expectations, plans or forecasts
of future events and views as of the date of this press release.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements.
Important risks and uncertainties that could cause actual
results or outcomes to differ materially from those indicated in
forward-looking statements include, among others, risks related to
the Company’s ability to regain compliance with Nasdaq's continued
listing requirements or otherwise maintain compliance with any
other listing requirement of the Nasdaq Global Select Market,
including the Minimum Bid Price Requirement, the potential
de-listing of the Company’s shares from the Nasdaq Global Select
Market due to failure to comply with the Minimum Bid Price
Requirement or any other requirement, and the other risks set forth
in our filings with the Securities and Exchange Commission,
including in the Company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. For a detailed discussion of the risk factors
that could affect the Company's actual results, please refer to the
risk factors identified in the Company's reports filed with the
SEC. All information provided in this press release is as of the
date hereof, and the Company undertakes no duty to update or revise
this information unless required by law, and forward-looking
statements should not be relied upon as representing the Company’s
assessments as of any date subsequent to the date of this press
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240129116545/en/
Investor Relations Roger Ou SVP of Finance and Investor
Relations CareMaxInvestorRelations@caremax.com
Media Conchita Topinka Conchita@thinkbsg.com
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