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Wheels Up Board Approves Reverse Stock Split

by Mia Yao
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Wheels Up Board Approves Reverse Stock Split

The Wheels Up board has approved a reverse stock split to increase the trading price of its shares, following heavy financial losses and the potential of being delisted from the New York Stock Exchange.

The company’s stakeholders authorized a 1-for-10 reverse stock split of Wheels Up’s Class A common stock. The split will be effective after the close of trading on The New York Stock Exchange on June 7.

The board made the decision less than a month after Kenny Dichter, Wheels Up founder and former CEO, stepped down. On the same day, the company said it was updating its membership programs to attract new fliers and increase revenue.

Facing supply constraints and increased operating costs, as well as an increase in equity-based compensation expense, Wheels Up saw its net loss losses widening to USD$555 million in 2022, up by nearly 10 percent from the earlier record of USD$507 million. The adjusted net loss was more than twice the loss of USD$197 million reported in 2021.

Following the reverse stock split, the company’s common stock will have a new CUSIP and ISIN number. The total number of authorized shares will be reduced from 2.5 billion to 250 million. The company does not plan to issue fractional shares and will instead provide cash in lieu of such fractional shares.

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