International Land Alliance Inc. Material Event - An Investor's Guide

International Land Alliance Inc. (ILA) recently made a significant move that impacts its stock and investors. Let's cut through the financial jargon and understand what happened, why it matters, and what it means for your investment.

First, a quick introduction: International Land Alliance Inc. (ILA) is a land development and real estate company that acquires, develops, and sells properties, primarily in Baja California, Mexico. Understanding their core business helps put this news into perspective.

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1. Event Description (What happened?)

Here's the key development: International Land Alliance recently completed a "Reverse Stock Split."

What does this mean for you? Imagine you have a pizza cut into 50 tiny slices. A reverse stock split is like combining 50 of those tiny slices into one larger, more substantial piece. For ILA, the company converted every 50 shares of its common stock into just 1 share.

So, if you owned 500 shares before, you now own 10 shares. While your share count decreases, the price of each share proportionally increases. For instance, if ILA closed at $0.05 per share before the split, it would theoretically open at $2.50 per share afterward (50 x $0.05). The total value of your investment should remain the same immediately after the split, but the stock's appearance changes.

Before this action, ILA had approximately 133,000,000 shares of common stock outstanding. Following the 1-for-50 split, this number significantly reduced to roughly 2,660,000 shares. This substantial reduction in outstanding shares aims to consolidate the stock.

2. Event Date/Timeline

The company officially announced this development on January 30, 2026, confirming it filed an amendment to its Certificate of Incorporation with the Delaware Secretary of State for the split. The Reverse Stock Split became effective, and the stock began trading on this new, post-split basis, on February 4, 2026.

Shareholders initially approved the concept of a reverse split on November 4, 2025. This approval empowered the Board of Directors to determine the precise ratio, which they later set at 1-for-50. Therefore, while the shareholder approval occurred earlier, the split itself is a recent and active event.

3. Why did it happen? (context and background)

Why did ILA undertake this action? The company explicitly outlined several key reasons for the reverse stock split:

• Increase Per-Share Trading Price: ILA's stock has historically traded at a very low price, often categorized as a "penny stock." A higher per-share price can make the stock appear more attractive and credible to a broader range of investors, especially larger institutional investors and funds that often have policies against investing in very low-priced securities.
• Improve Marketability and Liquidity: A higher stock price can generate greater investor interest, potentially boosting trading volume and enhancing the stock's overall liquidity.
• Facilitate Future Capital Raising: A more substantial stock price can simplify the company's efforts to raise capital through future equity offerings. This is vital for funding its land development projects and supporting growth initiatives.
• Position for Potential Uplisting: ILA currently trades on the OTCQB marketplace, which has less stringent listing requirements. A higher share price is a necessary condition for potentially uplisting to a major exchange like NASDAQ or NYSE in the future, which could significantly expand its investor base.

This strategic move aims to enhance the company's standing in the capital markets and support its long-term growth objectives within the real estate sector.

4. Financial Impact (if applicable)

While the reverse stock split does not change the company's overall financial health or total stockholders' equity, it significantly alters the presentation of its capital structure and key financial metrics.

• For the Company:
  • Earnings Per Share (EPS): Following the 1-for-50 reverse stock split, the company will proportionally increase its earnings per share. For example, if the company previously reported $0.01 EPS, it would theoretically report $0.50 EPS post-split, assuming no change in net income.
  • Balance Sheet Equity Section: The number of outstanding common shares will decrease. The company will adjust the par value of common stock accordingly, and it typically reflects any difference in the additional paid-in capital account, ensuring total stockholders' equity remains unchanged.
  • Authorized Shares: The number of authorized shares of common stock typically remains unchanged unless the amendment specifies otherwise. This results in a larger proportion of authorized but unissued shares available for future corporate purposes.
• For Investors:
  • Total Investment Value: Immediately following the split, the theoretical total market value of an investor's holdings should remain the same, as the share price is expected to increase proportionally to the decrease in share count.
  • Fractional Shares: Shareholders who would otherwise receive fractional shares will instead receive a cash payment. This payment will be based on the average closing price of the common stock on the OTCQB for the five trading days immediately preceding the reverse split's effective date.
  • Equity Awards: The company will proportionally adjust all outstanding stock options, warrants, and other equity awards. This adjustment applies to both the number of shares underlying such awards and their respective exercise prices, maintaining their intrinsic value.

5. Impact Assessment (Who/What is affected and Why does this matter?)

Why does this matter to you? This event holds significant implications because:

• Altered Stock Appearance: The stock price per share will be considerably higher, but you will own fewer shares. The total value of your investment should remain the same immediately after the split, assuming a neutral market reaction.
• Potential for New Investors: A higher share price may attract new investor types who previously avoided the stock due to its low price, potentially increasing demand.
• Risk of Price Decline: While the split aims to boost the price, it does not fundamentally change the company's underlying business or financial health. If ILA's operational performance or financial results do not improve, the stock price can still decline, negating the initial boost. Investors must consider this significant risk.
• Temporary Trading Symbol: For approximately 20 business days following the effective date, the stock will trade under the temporary symbol "ILALD" before reverting to "ILA." This is a standard procedure after a reverse split.

This move fundamentally alters how the market perceives and trades ILA's stock, aiming to present it in a more "respectable" light.

Who will feel the effects of this news?

• Investors: As shareholders, you are the most directly affected group.
  • Your share count will decrease, and your per-share price will increase.
  • If you owned a number of shares not perfectly divisible by 50 (e.g., 120 shares), you will not receive fractional shares. Instead, you will receive a cash payment for any "leftover" fractional share value, as detailed in the Financial Impact section.
  • Your shares will automatically adjust, and you will receive a new CUSIP number (a unique identification number for the security: 45826R403).
  • If you hold shares through a broker ("street name"), your broker will handle the adjustments and provide specific instructions.
  • Any outstanding stock options, warrants, or equity awards you hold will also be proportionally adjusted in terms of share count and exercise price, preserving their overall intrinsic value, as detailed in the Financial Impact section.
• The Company: While the overall value of its balance sheet remains unchanged, the market presentation of its stock is altered. This is a strategic move designed to potentially improve market perception and facilitate future growth.
• Employees: Those with stock options or equity awards will see their holdings adjusted, but the overall value should remain consistent.
• Customers, Partners, and Suppliers: The impact is less direct, but a stronger-looking stock could indirectly signal a more stable and credible company. This can benefit business relationships and future development projects.

6. What happens next? (immediate and future implications)

What comes next for International Land Alliance?

• Immediately: The stock now trades under the new, higher price and the temporary symbol "ILALD." The market's reaction to this change over the coming days and weeks will be closely observed.
• In the Future: The company hopes this move will help stabilize its stock price, attract more institutional and retail investors, and potentially open doors to new financing opportunities crucial for its land development projects. After approximately 20 business days, the trading symbol will revert to "ILA." Investors should closely monitor ILA's upcoming earnings reports and official updates to determine if this strategic move translates into tangible improvements in its operational performance, financial health, and progress on its real estate developments. The success of this reverse split ultimately hinges on the company's ability to execute its business strategy.

7. Key Takeaways for Investors

For investors, here are the key practical takeaways:

• Your total investment value should remain the same initially: Do not be alarmed if you see fewer shares in your account. The price per share should be proportionally higher, balancing out the change.
• Closely monitor market reaction: While the theoretical value remains unchanged, the market often reacts to reverse splits. Sometimes, if underlying business issues persist, the stock price continues to fall after a reverse split, negating any initial boost. This represents a critical risk.
• Understand fractional shares: If you held a number of shares not perfectly divisible by 50, you will receive cash for the leftover value. This payment is based on the average closing price over the five days prior to February 4, 2026. Consequently, you might end up with a slightly smaller investment in the company if you do not reinvest that cash.
• Temporary Symbol: Remember that "ILALD" is a temporary trading symbol. Avoid confusion.
• Why companies undertake this: A reverse split often signals that a company's stock price has been struggling, pointing to potential underlying financial or operational challenges. While it can be a necessary step for improvement and marketability, it also serves as a strong prompt to delve deeper into the company's fundamentals, business strategy, and financial performance.
• Conduct your own due diligence: While this summary simplifies the event, serious investors should always consult official company filings (such as the 8-K report with the SEC) for precise details and the company's stated rationale.
• Re-evaluate your position: Consider whether this news, combined with ILA's land development business, alters your original reasons for buying or holding ILA shares. Does it increase or decrease your confidence in the company's future and its ability to execute its strategy?
• Disclaimer: This information is for understanding the news and not financial advice. Always make investment decisions based on your thorough research and personal financial goals.