Worksport CEO says Nasdaq listing will be ‘very beneficial in the long-term’
- Worksport says its stock will uplist to the Nasdaq exchange on Wednesday.
- The U.S. company expects to generate $18 million in gross proceeds.
- Worksport announced a reverse split to meet Nasdaq's initial listing requirements.
Worksport Ltd. (OTC: WKSP) announced in a Tuesday press release its stock will uplist to the Nasdaq exchange on Wednesday. As part of the public offering, the company priced 3.27 million units at a price to the public of $5.50 per unit, Worksport said in a press release
Founded in 2003 and headquartered in Vaughan, Ontario, Canada, Worksport sells tonneau covers for pickup trucks that offer added security and protection to cargo.
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To meet Nasdaq’s initial listing requirements, Worksport announced a reverse split of its issued and outstanding common stock that will go into effect today at 12:01 a.m. ET at a ratio of 1-for-20.
Worksport expects to generate $18 million in gross proceeds
The common stock and warrants will list separately on Nasdaq. Trading will begin Wednesday under the ticker symbols “WKSP” and “WKSPW”, respectively. Worksport expects the offer to generate $18 million in gross proceeds before the listing-related expenses, including discounts and commissions. Worksport Steven Rossi said in the press release:
At the conclusion of our recent public offering, Worksport has a balance sheet with more than $20,000,000 million in cash and cash equivalents and no long-term debt. We have accomplished great deal in the past year despite the pandemic, and we look forward to the additional opportunities afforded by our strengthened balance sheet and higher profile with the investor community.
Rossi tells Invezz: listing will be ‘very beneficial in the long-term’
The Nasdaq listing comes at what some consider to be a difficult time for new shares. The Nasdaq exchange is not far removed from historical all-time highs while the continued spread of the COVID-19 pandemic has some investors assuming a risk-off stance.
Speaking to Invezz on Wednesday, Worksport CEO Steven Rossi said that while life “goes on”, management is focused on the long-term prospects. He said:
We’re all aware of the spread, but we’re all aware, more so, that we’ll recover. I think that taking opportunities to grow a business, its infrastructure, and its cash reserves during the times that market conditions are prevailing has done us well, and will prove very beneficial in the long-term as we grow.