Sonder Sets Shareholder Meeting to Approve Stock Split to Stay on Nasdaq

Key Points

• Sonder is holding a shareholder meeting to vote on a reverse stock split to maintain its listing on Nasdaq.
• The reverse stock split is aimed at increasing the share price above $1 to comply with Nasdaq's trading requirements.
• Key stakeholders like Atreides, Fidelity, and Spark Capital hold significant voting power in the decision.

Summary

Sonder is organizing a special shareholder meeting on September 15 to vote on a reverse stock split, which is necessary to keep its shares listed on Nasdaq after being notified that its share price had fallen below $1. The board will have discretion over the split ratio, with options ranging from 1-for-10 to 1-for-25. This move, while not affecting Sonder's market cap of $125 million, is crucial as many SPACs, including Sonder, have seen share prices drop post-market debut due to a shift in investor focus from rapid growth to profitability.