ScanTech AI Systems Inc. Material Event - What Happened

Hey there! Let's break down what's been going on with ScanTech AI Systems Inc. in a way that makes sense, without all the confusing business talk. Think of this as me explaining the news to you over coffee.

---

1. What happened? (in plain English - the actual event)

Okay, so the big news is that ScanTech AI Systems Inc. is undergoing a 1-for-20 reverse stock split. What does that mean? Basically, for every 20 shares of ScanTech stock you currently own, they will be combined into just 1 share. But don't worry, that single new share will be worth 20 times the price of one of your old shares. So, if you had 20 shares at $1 each, you'll now have 1 share at $20. It's like exchanging 20 dollar bills for one twenty-dollar bill – the total value is the same, just fewer pieces of paper.

2. When did it happen?

The company officially filed the paperwork for this change on December 11, 2025. The reverse stock split itself will become effective after the market closes on December 15, 2025, at 5:00 p.m. Eastern Time. You can expect to see the stock trading at its new, adjusted price on The Nasdaq Stock Market starting December 16, 2025, when the market opens.

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

ScanTech's stockholders actually gave the green light for the board of directors to make this kind of decision back at their Annual Meeting on November 21, 2025. Companies often do reverse stock splits for a few key reasons. One common reason is to boost their stock price to meet minimum requirements for exchanges like Nasdaq, where ScanTech's stock (STAI) is listed. If a stock trades too low for too long, it can risk being delisted. A higher stock price can also make the company look more appealing to bigger investors, who sometimes avoid "penny stocks" (stocks trading at very low prices). This move is likely aimed at improving the stock's market perception and ensuring it continues to meet listing standards.

4. Why does this matter? (impact and significance)

This is a big deal because it changes the face value of ScanTech's stock. While your total investment value should stay the same right after the split (e.g., if you had 20 shares worth $1 each, you'll now have 1 share worth $20), the higher price per share can help the company maintain its listing on Nasdaq and potentially attract more institutional investors. It's a strategic move to improve the stock's market perception and compliance with exchange rules. It doesn't change the underlying business, but it changes how the stock is presented in the market.

5. Who is affected? (employees, customers, investors, etc.)

This isn't just about the company itself; it touches a lot of people:

• Employees: The direct impact on employees is generally minimal. This is primarily a financial restructuring of the stock, not a change in the company's operations or products.
• Customers: Similar to employees, the direct impact on customers is minimal. Their products and services from ScanTech shouldn't change because of this.
• Investors (that's you!): This directly impacts you! Your share count will go down, but the price per share will go up proportionally. If you end up with a fraction of a share (like 0.5 of a share), the company will pay you cash for that portion based on the closing price on December 15, 2025.
• Competitors: This move might signal ScanTech's commitment to maintaining its market presence and stock exchange listing, which could be noted by competitors, but it doesn't directly change the competitive landscape.

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

So, what's on the horizon?

• Immediately: The split will become effective on December 15th, and trading on the adjusted basis will begin on December 16th. You'll see your share count change in your brokerage account.
• Longer Term: ScanTech will be hoping this move helps them maintain their Nasdaq listing and makes their stock more attractive to a wider range of investors, potentially leading to more stability or growth in the stock price. The market's reaction in the days and weeks following will be key to understanding the true impact.

7. What should investors/traders know? (practical takeaways)

If you're thinking about your money and ScanTech, here's what to keep in mind:

• Don't be surprised when you see your share count drop and the price per share jump – this is the expected outcome of a reverse stock split.
• Your total investment value should be the same right after the split, but the market's reaction in the days and weeks following will determine its true impact.
• If you own shares, check your brokerage account around December 16th to see the changes reflected.
• Understand that a reverse split doesn't change the underlying business; it's a cosmetic change to the stock structure. The company's fundamentals (how well it's actually doing) are still what will drive its long-term value.
• If you have fractional shares, expect a cash payment for those portions.

This is just a quick rundown to help you get a handle on things. Always do your own research and consider talking to a financial advisor if you're making big decisions!