- Simplified Capital Structure Complements Company's Revenue Growth and Enhanced Profitability -
FT. LAUDERDALE, FL / ACCESSWIRE / January 10, 2024 / Cardiff Lexington Corporation (OTC PINK:CDIX), an acquisition holding company focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry, today announced that it has implemented a 75,000-to-1 reverse split of its common stock as a part of the Company's broader strategy to list its common stock on a national securities exchange. The Company's common stock began trading on a split adjusted basis at the opening of the market on Tuesday, January 9, 2024.
As a result of the reverse stock split, each 75,000 shares of the Company's outstanding common stock will be automatically combined and converted into one outstanding share of common stock.
"In concert with our growth and improving financial performance, we are implementing a reverse stock split as part our strategy to meet initial listing qualification standards to uplist our common stock on a national securities exchange," Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented. "Our business is performing well. The third quarter demonstrated continued revenue growth, material gross margin improvement, and pre-tax net income of approximately $2.0 million in the quarter and $2.8 million for the nine months ended September 30, 2023. We are also focused on simplifying the capital structure to better align our share count and public float with our strong operating business. As part of this strategy, a majority of our preferred holders have committed to converting their preferred stock to common shares. With a significantly reduced share count post-split, we are positioned to report healthy earnings per share going forward, particularly given our targeted growth throughout Florida and beyond in the broader southeast region. We recently announced our tenth location and are energized by the market opportunity for our unique and proven business model."
Mr. Cunningham continued, "This split is an important milestone and one of a series of strategic steps we are taking to strengthen the capitalization of the business to support our growth into a much larger and more profitable company, as well as to enhance the exposure and liquidity of Cardiff Lexington in the public markets."
About Cardiff Lexington Corporation:
Cardiff Lexington Corporation is focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance.
A substantial majority of the Company's revenue is derived from Nova Ortho and Spine, PLLC, or Nova, which are regional primary specialty and ancillary care facilities throughout Florida that provide traumatic injury victims with a full range of diagnostic and surgical services, primary care evaluations, interventional pain management, and specialty consultation services.
For more information on Cardiff Lexington Corporation, you may access the company's website at https://cardifflexington.com/
Forward Looking Statements
This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management's beliefs, assumptions, and expectations of the Company's future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The Company does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Forward-looking statements are subject to a number of factors, risks, and uncertainties, some of which are not currently known to us, that may cause the Company's actual results, performance, or financial condition to be materially different from the expectations of future results, performance, or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in "Risk Factors" included in our filings with the Securities and Exchange Commission.
Cardiff Lexington Investor Relations
[email protected]
(800) 628-2100 ext. 705
or
IMS Investor Relations
[email protected]
(203) 972-9200
SOURCE: Cardiff Lexington Corporation