Jet.AI Inc. Implements Significant Reverse Stock Split Strategy

Jet.AI Inc. Announces Reverse Stock Split

Jet.AI Inc. (Nasdaq: JTAI), a company based in Las Vegas, has made a critical announcement regarding its stock structure. This decision comes as part of a proactive plan to enhance its corporate governance and future growth prospects. The firm will execute a reverse stock split at a ratio of 1-for-225, ensuring that the shares comply with Nasdaq’s minimum bid price requirements.

Details of the Reverse Stock Split

This reverse stock split will take effect before the markets open on a specified Tuesday morning. Following this adjustment, shareholders will see their holdings converted automatically. For instance, for every 225 shares currently held, stockholders will have one share after the split, which maintains the par value per share unchanged. This adjustment will be reflected automatically for those with shares held in brokerage accounts.

Rationale Behind the Decision

The primary objective of this move is to ensure compliance with Nasdaq's listing criteria. By consolidating the number of shares, Jet.AI aims to stabilize its share price, thereby making it more appealing to potential investors. Additionally, this split provides the company with the opportunity to create more shares for future issuance, which could be critical for future fundraising or acquisition strategies.

Impact on Shareholders

The reverse split will affect all shareholders uniformly; however, it may lead to the creation of fractional shares. In such cases, any fractional shares will be rounded up to the next whole share, ensuring no shareholder is left with incomplete holdings. This adjustment also means that proportional revisions will accompany any existing equity awards, convertible preferred stock, and warrants.

About Jet.AI and Its Operations

Jet.AI Inc. operates in two main segments: Software and Aviation. The Software segment includes innovative platforms such as the B2C CharterGPT app, designed to refine the private jet booking process through advanced technologies such as natural language processing and machine learning. The Aviation segment features a variety of services including aircraft shared ownership, jet cards, and management services, reinforcing Jet.AI's commitment to a comprehensive aviation experience.

Innovation and Partnerships

Additionally, Jet.AI has established key partnerships, such as its collaboration with the NHL's Las Vegas Golden Knights, champions of the recent Stanley Cup. This partnership not only enhances their brand visibility but also aligns Jet.AI with high-profile events, further boosting its reputation in the aviation sector.

Investor Communication and Support

For any inquiries pertaining to the reverse stock split, shareholders are encouraged to contact their brokers. All other stockholders can reach out directly to the company’s transfer agent, Continental Stock Transfer & Trust. The investor relations team at Gateway Group, Inc. is also available for additional assistance, ensuring transparency and support throughout this transition.

Frequently Asked Questions

What is the reason for the reverse stock split?

The reverse stock split is implemented to ensure compliance with Nasdaq's listing requirements and improve the company’s share price stability.

How will my shares be affected by the reverse stock split?

If you hold 225 shares, they will be consolidated into one share, with the total par value remaining unchanged.

What should I do if I have questions about my shares?

Shareholders with shares in brokerages should consult their brokers, while other inquiries can be directed to the company’s transfer agent.

Will this split affect my ownership percentage in the company?

No, the split is designed to affect all shareholders uniformly, so your ownership percentage will remain consistent.

How does Jet.AI plan to use the capital from future share issuance?

The company can utilize future share issuance for growth initiatives, operational expansions, or strategic acquisitions, thereby advancing its market positioning.

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