- REVERSE SPLIT FAQS
- What is a reverse stock split?
A reverse stock split is a corporate action in which a company reduces the total number of its authorized, issued and outstanding shares. A reverse stock split involves the company dividing its current shares by a number such as 10 or 20, which would be called a “1-for-10” or “1-for-20” reverse stock split, respectively. A reverse stock split is also known as a stock consolidation or combination.
- Why is Skye effecting a reverse stock split?
The primary objective for the reverse stock split is to significantly reduce our issued stock to facilitate a potential uplisting to a national stock exchange and expand our access to a broader range of investors. This move is in line with our strategic growth initiatives.
- How was the 1:250 ratio determined?
The ratio was determined by Skye's management and Board of Directors after careful consideration of factors including the company's strategic goals, the historical stock price, and our aim to uplist to a national exchange.
- Has Skye Bioscience conducted a reverse split before?
- Is stockholder approval required for the reverse stock split?
The state of Nevada, where Skye is incorporated, does not require stockholder approval for a reverse stock split. Skye’s Board of Directors approved the 1-for-250 reverse stock split, which will result in every 250 shares of issued and outstanding common stock being converted into 1 share of issued and outstanding common stock.
- When is the effective date of the reverse stock split?
The effective date for the reverse stock split is Friday, September 8th, 2023.
- Will your stock symbol change?
Yes, our stock symbol will be “SKYED” for 20 trading days as of the effective date of the reverse split. The symbol will then revert back to “SKYE”.
- How many shares will I own after the reverse stock split?
To calculate the number of shares you own after the reverse stock split, divide the number of shares that you own immediately before the effectiveness of the reverse stock split by 250 and round up to the nearest whole share (as all fractional shares of common stock will be rounded up to the nearest whole share). The reverse stock split does not alter a stockholder’s percentage of ownership in the company’s equity, except to the extent of fractional share rounding. You will still own essentially the same percentage of the company that you owned prior to the reverse stock split because every other stockholder also owns the same relative proportion of shares.
- How will the reverse split affect Skye’s market capitalization?
The reverse stock split will not change the company's market capitalization. Although the number of outstanding shares will decrease, the share price is proportionally increased.
- Does Skye charge a fee for new shares?
- Does Skye have any other securities that will change?
Skye’s outstanding securities are comprised of common stock, stock options, and warrants. All these securities will be subject to the reverse split ratio. Should you have any questions regarding your options or warrants, please contact firstname.lastname@example.org.
- Who is the company’s transfer agent?
Skye’s transfer agent is ClearTrust LLC. Their contact information is available at cleartrustonline.com/contact.
- Will the CUSIP number for Skye’s stock change?
Yes, the new CUSIP number is 83086J200.
- Will the number of authorized shares change?
Yes, the reverse stock split reduces the authorized shares of common stock from 5,000,000,000 to 20,000,000 shares.
- How do I receive my new shares?
Your position will automatically be changed to reflect the adjustment in the number of shares. Should you have any questions on this process, please contact your broker if you hold your shares in “street name” or ClearTrust LLC if you are a stockholder of record.
- Are there any tax or accounting consequences due to the reverse stock split?
While we do not anticipate any tax impact on you as a stockholder, we encourage you to consult your tax advisor to answer any tax-related questions.
- Can I update my contact information to properly receive my new shares?
We encourage you to coordinate with your broker to ensure your account information is up to date. For any stockholder who owns physical shares, please contact ClearTrust LLC for additional information.
- Where can I receive additional information about my stock?
For more information, please contact ClearTrust LLC (contact information is available at cleartrustonline.com/contact or our investor relations department (contact information is available at ir.skyebioscience.com, as appropriate.
- GENERAL FAQS
- When was Skye Bioscience, Inc. incorporated?
The Company was incorporated in the State of Nevada on March 16, 2011 as Load Guard Transportation, Inc., and subsequently changed its name to Load Guard Logistics, Inc. in 2012. On October 31, 2014, the Company closed a reverse merger transaction pursuant to which Nemus, a California corporation (“Nemus Sub”), became our wholly owned subsidiary, and we assumed the operations of Nemus Sub. Nemus Sub was incorporated in the State of California on July 17, 2012. On November 3, 2014, the Company changed its name to Nemus Bioscience, Inc. by merging with Nemus Sub. On March 25, 2019, the Company changed its name to Emerald Bioscience, Inc. On January 19, 2021, the Company changed its name to Skye Bioscience, Inc.
- What is Skye Bioscience, Inc.'s stock symbol?
Skye Bioscience, Inc.'s stock is traded on the OTCQB under the symbol SKYE.
- How can I purchase stock in Skye Bioscience, Inc.?
Shares can be purchased through a licensed stockbroker or an online trading account. Skye Bioscience does not have a direct stock purchase plan.
- What is Skye Bioscience, Inc.’s CUSIP number?
- Does Skye Bioscience, Inc. pay dividends?
We do not pay dividends on any of our capital stock and do not anticipate that we will pay dividends in the foreseeable future.
- Where can I learn more about Skye Bioscience, Inc.?
Please review our presentation and fact sheet located under investor resources of the IR overview page or contact investor relations directly at email@example.com
- Where can I learn about upcoming events and presentations?
Visit our News & Events page for information about upcoming events and presentations.
- Where can I learn about Skye Bioscience, Inc.’s management team?
Management team profiles are available on our Management Team page.
- When is Skye Bioscience, Inc.'s fiscal year end?
- Where is Skye Bioscience, Inc. headquartered?
Skye Bioscience's headquarters are located in San Diego, California. The main phone for this location is (858) 410-0266.
- Who is Skye Bioscience, Inc.'s independent auditor?
- Who is Skye Bioscience, Inc.'s outside legal counsel?
- Who is Skye Bioscience, Inc.'s transfer agent?
ClearTrust, LLC. Note, existing shareholders interested in getting an updated statement representing book shares or a revised stock certificate, please email ClearTrust at firstname.lastname@example.org
- Who can I contact for general information about Skye Bioscience, Inc.?
Skye Bioscience, Inc. Investor Relations
Phone: (858) 410-0266 Ext. 1