Volcon, Inc. Investigating Request for Issuance of Shares Following Reverse Stock Split

Volcon, Inc. (NASDAQ: VLCN) recently underwent a one-for-eight reverse stock split on November 8, 2024. As part of this stock split, the company agreed not to issue fractional shares and instead opted to provide one full share of post-reverse split common stock to shareholders entitled to fractional shares. However, a subsequent request from DTCC, on behalf of brokerage firms holding Volcon’s stock in “street name,” indicated that the company would need to issue 188,950 shares of common stock to address rounding discrepancies.

In response to this request, Volcon has expressed doubts regarding the accuracy of the number of shares being demanded. Citing historical shareholder data and similar situations observed in the past, Volcon has initiated an inquiry into the calculations presented in the request. During this investigative period, the company has decided to withhold the issuance of any shares related to the fractional shares being requested.

Volcon is aware that failure to comply with the issuance of shares could potentially lead to legal liabilities. Therefore, the company is committed to resolving this matter diligently and ensuring that any forthcoming decisions are based on accurate and comprehensive information.

The company aims to provide transparency and clarity as it navigates through this issue, keeping shareholders informed of any developments that may arise during the course of the inquiry. Volcon’s management is dedicated to upholding the highest standards of corporate governance and addressing shareholder concerns in a responsible manner.

Investors and stakeholders are advised to monitor further announcements from Volcon as the company works to reach a resolution regarding the issuance of post-reverse stock split shares.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Volcon’s 8K filing here.

Volcon Company Profile

Volcon, Inc develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications.