In November last year, DPW Holdings Inc., (NYSEAMERICAN:DPW) set out to simplify its corporate structure. At the heart of the simplification was the need to salvage the value of its stock price, which was nosediving badly.
A warning from NYSE American
In a statement early this year, the firm said that the realignment was progressing well. Notably, the corporation will now consist of two broad subsidiaries. In particular, there will be DPW Technologies Group, Inc. and DPW Financial Group, Inc. Interestingly, the holding company will aggregate financial reporting of the two broad subsidiaries with other smaller subsidiaries. Further, the holding firm will own the two broad subsidiaries in their entirety.
Notably, the holding company hopes that the split of the company will help set in motion new initiatives. In particular, the new initiatives will, specifically, focus on boosting the company’s share price. Interestingly, the NYSE American already notified the company of the underperforming situation of its stock.
A separate listing of DPW Technologies Group
In a statement, the Exchange said that the Company’s share price had been too low for too long. A section of the exchange’s company guide states that shares must sell at a favorable price to warrant continued listing. Therefore, it is evident that DPW’s low share price could lead to delisting. However, the exchange allowed the company to put its house in order before July 4, 2019. Interestingly, the exchange suggested a reverse stock split if the company will not grow its selling price per share before the given time.
Last year, DPW was considering a separate listing of the DPW Technologies Group, Inc. As such, the firm would have more growth opportunities for its common stock. Notably, the firm expects to finalize the listing before the end of the first half of 2019. In particular, the company expects the divestiture to enable it to execute the existing backlog. Further, it would give investors an opportunity to invest directly into the firm.
In particular, the purpose of the divestiture will be to allow the subsidiary to operate independently. This will give it the opportunity to execute efficient growth strategies as well as raise capital and grow its balance sheet.