Inpixon (Nasdaq: INPX), a leading indoor data company that
specializes in delivering indoor intelligence, today provided a
business update regarding recent activity in the stock following
the reverse split and reaffirmed the Company’s positive outlook for
2020.
Nadir Ali, CEO of Inpixon, commented, “On November 15, 2019, our
shareholders approved a reverse split in order to allow the Company
to regain compliance with Nasdaq’s $1.00 minimum bid price
requirement. As communicated during our third quarter earnings
call, we determined not to immediately proceed with the reverse
split even after obtaining shareholder approval prior to the
November 26, 2019 compliance deadline so that we could request that
Nasdaq grant us additional time to regain compliance without the
need for a reverse split.
On November 27, 2019, we reported that the Nasdaq staff had
denied the Company’s request for additional time to evidence
compliance and that our common stock would be subject to delisting.
In order to stay the delisting of our common stock, we requested a
hearing to appeal the Nasdaq staff’s determination, which is
currently scheduled for January 23, 2020. At the hearing, we will
be required to demonstrate to the Nasdaq Hearings Panel, a
sustainable ability to meet and maintain compliance with Nasdaq’s
minimum bid price requirement.
On January 6, 2020, we announced plans to conduct the reverse
split approved by stockholders, which became effective on January
7, 2020. While we regret the need to conduct the reverse split,
especially in light of the strong momentum we had in the market,
the decision was one of timing and potential necessity. Following
consultation with our advisors, our Board of Directors determined
that the implementation of the reverse split at the approved ratio
at least 10 trading days before the hearing would allow the Company
to not only demonstrate at the hearing that its share price
satisfied the minimum bid price requirement for the minimum
required period, but also an ability to remain in continuing
compliance.
While there was an uptrend in our share price immediately prior
to the implementation of the reverse split, there were no
assurances that we would have been able to satisfy the minimum bid
price organically prior to our Nasdaq hearing in order to
demonstrate that the share price could meet the minimum bid price
requirement on an ongoing basis. As a result, our Board concluded
that implementation of the reverse split provides the greatest
opportunity for a successful outcome following the hearing to
ensure our continued listing on Nasdaq and avoid the significant
challenges for us all that would arise from a delisting.
It is important to note that the reverse split does not alter
shareholders’ pro-rata ownership percentage, as all shares,
including those held by the Board and management, were reduced by
the same amount.
As a publicly traded company, my Board and I are keenly aware
that our number one priority is protecting and building shareholder
value and we understand that stock price is an important measuring
tool of our business performance. Every decision we have made was
carefully considered by our Board with our shareholders’ investment
interests in mind.
We are working diligently to firmly establish our leadership in
the multi-billion-dollar indoor intelligence market and to grow our
market share. We anticipate all of the acquisitions we made last
year to be accretive and they have allowed Inpixon to position
itself as one of the only companies currently in the market that
can offer end-to-end solutions for indoor intelligence that include
intelligent mapping, positioning, analytic services and development
tools across a variety of verticals and industries with a multitude
of price and entry points.
We believe the growth experienced and milestones achieved in
2019, as well as our prospects for 2020, will enable us to drive
shareholder value. We are rapidly growing our commercial and
government customer base, and our sales pipeline is more robust
than ever. This is best illustrated by the 63% increase in revenue
for the third quarter of 2019, compared to the same period in the
prior year, which represents our third consecutive quarter of
year-over-year growth. We also ended our 2019 fiscal year with an
improved cash position and continue to anticipate revenue growth,
all of which lead me to strongly believe that the outlook heading
into 2020 is brighter than ever.
The purpose for the reverse split is clearly set forth above and
it was conducted to give Inpixon the greatest opportunity to regain
compliance for the benefit of all of you, our shareholders. The
entire Board and I are sharply focused on advancing Inpixon’s
business and once again, we are brightly optimistic about the
Company’s future. As I have hopefully explained here, my
Board and I believe the reverse split, although unfortunate, was
absolutely necessary under the circumstances to protect our Nasdaq
listing and forward prospects for our shareholders.
Personally, I want each of our shareholders to know that I value
you, every member of our Board is hearing you in all forms of
communication, and we are confident in the prospects of Inpixon’s
business. As I look to our future together, I want to express my
sincere appreciation for all of you. I look forward to providing
meaningful updates on our operational progress in the days and
weeks ahead.”
About Inpixon
Inpixon® (Nasdaq: INPX) is an indoor data company that
specializes in capturing, interpreting and giving context to indoor
data so it can be translated into actionable intelligence. The
company’s indoor location data platform ingests diverse data from
IoT, third-party and proprietary sensors designed to detect and
position all active cellular, Wi-Fi and Bluetooth devices, and uses
a proprietary process that ensures anonymity. Paired with a
high-performance data analytics engine, patented algorithms, and
advanced mapping technology, Inpixon’s solutions are leveraged by a
multitude of industries to do good with indoor data. This
multidisciplinary depiction of indoor data enables users to
increase revenue, decrease costs, and enhance safety. Inpixon
customers can boldly take advantage of location awareness,
analytics, sensor fusion and the Internet of Things (IoT) to
uncover the untold stories of the indoors. For the latest insights,
follow Inpixon on LinkedIn, Twitter, and visit
inpixon.com.
Safe Harbor Statement
All statements in this release that are not based on historical
fact are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
While management has based any forward-looking statements included
in this release on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of the
control of Inpixon and its subsidiaries, which could cause actual
results to materially differ from such statements. Such risks,
uncertainties, and other factors include, but are not limited to,
the fluctuation of economic conditions, the performance of
management and employees, Inpixon’s ability to obtain financing,
Inpixon’s ability to maintain its exchange listing, competition,
general economic conditions and other factors that are detailed in
Inpixon’s periodic and current reports available for review at
sec.gov. Furthermore, Inpixon operates in a highly competitive and
rapidly changing environment where new and unanticipated risks may
arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results.
Inpixon disclaims any intention to, and undertakes no obligation
to, update or revise forward-looking statements.
Inpixon Contacts
Media relations and general inquiries: Inpixon
Email: marketing@inpixon.com Web: inpixon.com/contact
Investor relations: Crescendo Communications,
LLC Tel: +1 212-671-1020 Email: INPX@crescendo-ir.com
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