By Jasmine Li
Shares of Verb Technology surged after the company's chief executive said its stock was severely undervalued.
The Las Vegas-based software company's stock was up 39.4% to $7.26 in late trading Friday, after hitting a high of $10.87 earlier in the day. The stock, which hit a 52-week low on Thursday, is down by nearly 80% this year.
In a letter published Thursday, Chief Executive Rory Cutaia said Verb had approximately $17.2 million in cash in the bank and $125,000 in debt as of June 30. He said that based on the company's net cash value alone, the stock should trade at more than $22.
"It makes no sense to me that the stock should trade the way it does," Cutaia wrote. "I can only assume that people are not reading the filings, analyzing the financials, and recognizing the amazing opportunity that the new Verb represents."
Verb received a delisting notice from the Nasdaq in November 2023 due to its low stock price. Stockholders voted in favor of a 1-for-200 reverse stock split in September to remain compliant.
"We did everything reasonably possible -- and then some -- to avoid it," Cutaia wrote.
Verb has taken action to restructure its business, and now expects high revenue growth for the rest of the year, according to Cutaia.
He said he would advocate for a forward stock split once the stock trades "in the range we believe it should."
Write to Jasmine Li at jasmine.li@wsj.com
(END) Dow Jones Newswires
October 11, 2024 15:22 ET (19:22 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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