PEDEVCO CORP: Reverse Stock Split Summary

Event Description

PEDEVCO CORP's Board of Directors has approved a 1-for-20 reverse stock split for its common stock. This means that for every 20 shares a shareholder currently owns, they will receive one new share. The company will reduce the total number of outstanding shares by a factor of 20. Immediately after the split, an investor's total market value will theoretically remain the same, but the price per share will be 20 times higher. For instance, if the stock traded at $0.50 per share before the split, it would become $10.00 per share afterward.

Event Date/Timeline

PEDEVCO CORP announced this decision on March 3, 2026. The reverse stock split will become effective at 12:01 AM ET on March 13, 2026. Trading on a post-split basis will begin on the NYSE American at market open on the same day, March 13, 2026.

Impact Assessment

The primary goal of this reverse stock split is to increase the company's per-share trading price. This aims to meet the NYSE American exchange's minimum $1.00 bid price requirement, which is crucial for maintaining the company's listing. Failing to meet this requirement could result in delisting, significantly reducing the stock's visibility and liquidity. A higher share price may also make the stock more appealing to institutional investors and improve its overall marketability.

Impact on Shareholders/Investors:

• Shareholders will own fewer shares, but each share will be proportionally more valuable.
• The reverse split might reduce trading liquidity due to fewer outstanding shares and a higher price point, potentially making it harder to buy or sell shares.
• Shareholders who would otherwise hold a fractional share will receive a cash payment for it. This payment will be based on the common stock's closing price on the NYSE American on March 12, 2026.
• The company's trading symbol, "PED," will remain unchanged. However, the CUSIP number will change to 70532Y402.

Impact on Employees, Customers, and Competitors: This event typically has no direct, immediate impact on employees, customers, or competitors.

Financial Impact

The reverse stock split is primarily an adjustment to the company's capital structure. While the company will reduce the number of outstanding shares by a factor of 20, the total market capitalization is expected to remain unchanged immediately after the split. The par value per share will also adjust proportionally. The company will incur a minor cash outflow to pay for fractional shares. Importantly, this action does not, by itself, alter the underlying business operations or the company's fundamental financial health.

Key Takeaways for Investors

While the theoretical value of your investment remains the same immediately after the split, investors should be aware that market reactions can vary. Historically, reverse stock splits are often associated with companies facing operational or financial challenges. Some stocks, after a reverse split, may experience further price declines in the weeks and months following the event.

Key Actions for Investors:

• Monitor the stock's performance and trading volume closely after March 13, 2026, and anticipate potential volatility.
• Conduct thorough due diligence on the company's financials, business strategy, and risk factors.
• Understand your personal risk tolerance before making any trading decisions.