Owlet, a tech company focusing on smart baby monitoring, announced it would proceed with a 1-for-14 reverse stock split of its Class A common stock effective July 7.

The announcement comes just one week after the company reported it obtained FDA clearance for its prescription pulse oximetry sock for infants dubbed BabySat. 

The stock will trade on a split-adjusted basis when the New York Stock Exchange (NYSE) opens on July 10, with par value of the shares changed to $0.0001 per share.

The company expects the split will allow it to regain compliance with the $1.00 minimum average closing price required of stocks traded on the NYSE.  

No change will be made to the company's trading symbol OWLT in connection with the split.

"While this reverse stock split is primarily driven by technical compliance to the NYSE minimum stock price requirement, the core of the business continues to get healthier," Kurt Workman, Owlet’s CEO and cofounder, said in a statement. "We're optimistic about the progress we're making towards improving margin, channel health and reaching profitability. Following last week's announcement of our first FDA clearance we're excited about the future of this category and the expanded access and adoption that regulatory approvals will give to parents around the world."

THE LARGER TREND

In 2021, the company went public through a SPAC, trading at just under $10 per share on the NYSE upon opening. It's currently trading at around $0.35 per share. 

In its latest earnings report for the first quarter of 2023, the baby tech company reported revenue of $10.7 million compared to $21.5 million in Q1 2022. 

Operating loss was reported as $11 million in Q1 of this year compared to $21.7 million in Q1 2022, and net loss was $11.9 million compared to $28.8 million. 

Adjusted EBITDA loss was about $5.8 million in Q1 2023, down from $18 million in the first quarter of last year. 

In February, the company announced it raised $30 million in private placement financing.