Is PRST planning to reverse split

Yes, Presto Automation Inc. (PRST) is planning to reverse split its stock. The company has announced its intention to pursue a reverse stock split as a means to increase the per share market price of its common stock and meet the minimum per share bid price requirements set by the Nasdaq Stock Market. The reverse stock split is aimed at addressing the company's non-compliance with Nasdaq's listing rules, which has led to a notice from Nasdaq requiring PRST to regain compliance within a specified period.

1. **Reverse Stock Split Purpose**: The primary goal of the reverse stock split is to increase the per share market price of the company's common stock to meet the minimum per share bid price requirements, as specified in Nasdaq Listing Rule 5450(a)(1). This is necessary to regain compliance with Nasdaq's listing rules, which PRST has been non-compliant with for 30 consecutive business days.
2. **Reverse Stock Split Expectations**: The reverse stock split is expected to boost the company's share price and attract more interest from investors, as well as help PRST meet the stock market requirements. The company has not yet disclosed the ratio of the proposed split, indicating that it will be determined by the board. If successful, the reverse stock split could help PRST avoid delisting from the Nasdaq stock exchange.
3. **Timeline and Consequences**: PRST has been given a period of 180 calendar days, or until June 25, 2024, to regain compliance with the bid price requirement. If the company fails to regain compliance by this date, it may be eligible for an additional 180 calendar day period to regain compliance, subject to meeting other continued listing requirements. The company's shares have declined in price by 97% over the past year, and it has been struggling with capital shortages as it shifts its business model from tabletop ordering tablets to AI. The reverse stock split is part of an effort to professionalize the business and address these challenges.

In conclusion, PRST is planning to reverse split its stock to increase its share price and regain compliance with Nasdaq's listing rules. The reverse stock split is a strategic move to address the company's financial challenges and maintain its listing on the Nasdaq stock exchange.