Company: SRFM
Filing Date: 2025-05-13
Form Type: DEF 14A
Source: 0001140361-25-018647
Chunk: 35

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-05-13
Form: DEF 14A
Chunk 35
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holders receiving cash in lieu of fractional shares. The par value of our common stock will continue to be $0.0001 per share (see “—Accounting Consequences”). Reasons for the Reverse Stock Split To mitigate the risk of the January 15, 2025 changes to the NYSE continued Listing Requirements and manage risk related to our listing on the NYSE. One purpose of the Reverse Stock Split is to raise the per share trading price of the Company’s common stock in order to maintain its listing on the NYSE. The continued listing requirements for the NYSE include a requirement that shares trade above $1.00. If an issuer’s shares have an average closing price of less than $1.00 over a consecutive 30 trading-day period or more, the issuer may be subject to delisting. On January 15, 2025, the Securities and Exchange Commission approved an amendment to Section 802.01C of the NYSE Listed Company Manual. Under the revised Section 802.01C, a company that fails to meet the $1.00 minimum price requirement will not be eligible for the standard six-month compliance period if (i) it has executed a reverse stock split within the past year or (ii) it has conducted multiple reverse stock splits with a cumulative ratio of 200 shares or more to 1 within the past two years. In such cases, the NYSE will begin immediate suspension and delisting procedures. As the Company effected a reverse stock split in August 2024, and given the current market volatility, in particular for companies of a similar market capitalization, the Board, despite the Company currently being in compliance with listing rules, is proposing a Reverse Stock Split as a risk mitigation tool to address the possibility that the Company could be suspended and immediately delisted from the exchange. These January 2025 revisions to Section 802.01C were first proposed by the NYSE on September 30, 2024, the month following the Board’s decision to effect its prior reverse stock split at a ratio of 1:7, despite stockholders approving a ratio of up to 1:10 at the 2024 Annual Meeting of Stockholders. Had the current version of Section 802.01C been in effect (or even proposed) at the time the Board made its decision regarding the ratio last year, a larger ratio may have been selected to the provide a larger stock price buffer. Delisting from the NYSE may adversely affect the Company’s ability to raise additional financing through the public