In This Article:
- Simplified Capital Structure Complements Company's Revenue Growth and Enhanced Profitability -
FT. LAUDERDALE, FL / ACCESSWIRE / January 10, 2024 / Cardiff Lexington Corporation (OTC PINK:CDIX), an acquisition holding company focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry, today announced that it has implemented a 75,000-to-1 reverse split of its common stock as a part of the Company's broader strategy to list its common stock on a national securities exchange. The Company's common stock began trading on a split adjusted basis at the opening of the market on Tuesday, January 9, 2024.
As a result of the reverse stock split, each 75,000 shares of the Company's outstanding common stock will be automatically combined and converted into one outstanding share of common stock.
"In concert with our growth and improving financial performance, we are implementing a reverse stock split as part our strategy to meet initial listing qualification standards to uplist our common stock on a national securities exchange," Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented. "Our business is performing well. The third quarter demonstrated continued revenue growth, material gross margin improvement, and pre-tax net income of approximately $2.0 million in the quarter and $2.8 million for the nine months ended September 30, 2023. We are also focused on simplifying the capital structure to better align our share count and public float with our strong operating business. As part of this strategy, a majority of our preferred holders have committed to converting their preferred stock to common shares. With a significantly reduced share count post-split, we are positioned to report healthy earnings per share going forward, particularly given our targeted growth throughout Florida and beyond in the broader southeast region. We recently announced our tenth location and are energized by the market opportunity for our unique and proven business model."
Mr. Cunningham continued, "This split is an important milestone and one of a series of strategic steps we are taking to strengthen the capitalization of the business to support our growth into a much larger and more profitable company, as well as to enhance the exposure and liquidity of Cardiff Lexington in the public markets."
About Cardiff Lexington Corporation:
Cardiff Lexington Corporation is focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance.