Spire Global Reverse Splits Stock to Raise Trading Price
Spire Global used a reverse stock split on Thursday to raise its trading price over $1. This means that every 8 shares of Spire were merged to 1 share, reducing the number of outstanding Class A shares from 166,782,887 to approximately 20,847,860.
Spire has been working to raise its share price since it was labeled at risk of being delisted in late March when its share price dipped below $1.The company’s stock was trading at higher than $4 on Thursday.
The company went public in the wave of special purpose acquisition companies (SPACs), and is now one of a few space SPACs to pursue reverse stock splits to raise the share price. Momentus did a reverse stock split last week, and Astra is considering one as well.
Spire’s business has grown rapidly, but the company is not profitable yet. In its most recent fiscal quarter, Spire reported a 37% year-over-year increase in quarterly revenue to reach $26.5 million, which was $2 million over its initial forecast. Its net loss was $16.3 million during the quarter, a 57% year-over-year improvement from the same period last year. The company is projecting operating cash flow to turn positive in the fourth quarter of this year.
Spire recently hired a new CFO — Leo Basola, former senior finance officer of Equifax International.
Correction: A previous version of this story cited 2022 financials. The story has been updated.