Fathom Announces 1-for-20 Reverse Stock Split to Increase Share Price

Fathom Digital Manufacturing Corp. has announced a 1-for-20 reverse stock split of its common stock, approved the company’s Board of Directors. The reverse stock split will take effect after the close of market trading on September 28, 2023.

Under the reverse stock split, every 20 shares of Fathom’s common stock will be combined into one share. This will reduce the number of issued and outstanding shares of the company’s Class A common stock from approximately 70.1 million to approximately 3.5 million. The same consolidation will apply to the Class B common stock, which is not listed on the New York Stock Exchange (NYSE).

No fractional shares will be issued as a result of the reverse stock split. Instead, the company’s transfer agent will sell any fractional shares and distribute the proceeds to the affected shareholders. The reverse stock split will not alter any stockholder’s percentage interest in the company’s equity, except for the treatment of fractional shares.

All outstanding public warrants to purchase the company’s Class A common stock will be proportionately adjusted as a result of the reverse stock split. The exercise price per share will be increased, and the number of shares subject to the warrants will decrease. Similar adjustments will be made to equity awards and private warrants exercisable for shares of the company’s Class A common stock.

The primary goal of the reverse stock split is to increase the per share market price of Fathom’s Class A common stock to meet the minimum $1.00 average closing price requirement for continued listing on the NYSE. The company’s Class A common stock is expected to begin trading on a split-adjusted basis on September 29, 2023. The trading symbol and CUSIP number for the stock will remain unchanged.

Fathom Digital Manufacturing Corp. is one of the largest on-demand digital manufacturing platforms in North America. The company offers a range of manufacturing services, including additive technologies, CNC machining, injection molding, and sheet metal fabrication. Fathom serves clients in various industries, including technology, defense, aerospace, medical, automotive, and IoT sectors.

Source: Fathom Digital Manufacturing Corp.