Historic Corporate Action Positions Company for Institutional Capital Access and Long-Term Shareholder Value
PEMBROKE PINES, FLORIDA / ACCESS Newswire / December 23, 2025 / Green Leaf Innovations, Inc. (OTCPK:GRLF), a leading distributor and manufacturer of premium handmade cigars, today announced that the Financial Industry Regulatory Authority (FINRA) has approved the company's reverse stock split at a ratio of 2,500:1, effective 12-22-2025. Additionally, the company will also be reducing its authorized share capital.
This strategic corporate action marks a transformative moment in the company's capital structure and positions Green Leaf Innovations for enhanced investor accessibility and long-term shareholder value creation.
KEY HIGHLIGHTS OF THE CAPITAL RECAPITALIZATION:
Reverse Stock Split (2,500:1 Ratio)
* Immediately increases stock price on a per-share basis, improving market perception among institutional investors
* Reduces share count from approximately 16.70B shares to approximately 6,680,000 million shares (post-split)
* Eliminates penny stock stigma associated with high share counts, potentially opening doors to broader investment communities
* Enhances trading visibility and liquidity through improved stock price positioning
Authorized Share Reduction (500% to 1000% Reduction)
* Demonstrates management's commitment to capital discipline and shareholder protection
* Reduces potential dilution concerns that have historically deterred institutional capital from current shares to a controlled authorized ceiling
* Creates a clean, manageable capital structure appropriate for a company with the company's market position
* Signals confidence in current market valuation and reduced need for continuous equity financing
STRATEGIC RATIONALE AND INVESTOR BENEFITS:
"This reverse stock split and authorized share reduction represent a pivotal moment for Green Leaf Innovations," said Roberto Mederos, CEO. "We have built a profitable growing business and also with the SOFLO acquisition substantially expanding our revenue and market reach. This corporate action is not about financial engineering - it's about aligning our capital structure with the operational reality of what we have accomplished.
"Our institutional investor outreach has consistently identified share count and authorized shares as barriers to portfolio inclusion. By reducing authorized shares while implementing a 2,500:1 reverse split, we dramatically reduce shareholder dilution risk and create a capital structure that attracts institutional capital. We are now positioned to compete for capital in markets previously inaccessible to us, while simultaneously protecting existing shareholders from the dilution concerns that plagued our previous structure."
BENEFITS TO THE INVESTMENT COMMUNITY:
1. Institutional Accessibility: Many institutional investors maintain minimum stock price thresholds for portfolio inclusion. The reverse split elevates our per-share price into ranges that align with institutional mandates.
2. Analyst Coverage: Higher stock prices and lower share counts typically attract greater analyst attention and coverage from institutional research platforms.
3. Index Eligibility: Improved stock price positioning enhances potential eligibility for inclusion in OTC market indices and other benchmark tracking products.
4. Reduced Dilution Risk: With authorized shares capped the outstanding post-split, shareholders have substantial room for growth while maintaining strong protection against excessive future dilution.
5. Capital Efficiency: The disciplined share structure signals management's commitment to capital stewardship and profitability-focused growth rather than dilutive financing.
SHAREHOLDER IMPACT:
Existing shareholders will experience a proportional adjustment to their holdings. For example, a shareholder holding 2,500 shares will receive one share post-split. No fractional shares will result from this split ratio. The reverse split is automatic and requires no action from shareholders.
The company's CUSIP number will change while the (GRLF) remains. All securities issued in connection with convertible notes, warrants, and preferred stock will be adjusted proportionally.
BOARD CONFIDENCE AND FORWARD STRATEGY:
"The Board's decision to pursue this recapitalization strategy, rather than a buyback program, reflects our confidence that the market will quickly recognize the improved capital structure and competitive positioning," Mederos continued. "As we execute on our retail cigar shop partnership initiative expansion through our distribution network, and continue to drive profitability across our brands, we expect this cleaner capital structure to accelerate institutional investor engagement and support sustainable share price appreciation."
The company anticipates that the improved capital structure will enhance its profile within the broader investment community and support its long-term growth trajectory.
ABOUT GREEN LEAF INNOVATIONS, INC.
Green Leaf Innovations, Inc. is a premier distributor and manufacturer of handmade premium cigars, including renowned brands such as CUBANACAN, MEDEROS, MAL.CRI.AO, TABACALERA SERRANO and others. With operations spanning Nicaragua's premier tobacco-growing regions and distribution reaching over 400 retail locations across the United States, Green Leaf Innovations is committed to delivering exceptional products to cigar enthusiasts while building shareholder value.
For more information, visit www.greenleafinnovation.com or follow @otcgrlf on X.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, but are not limited to: market acceptance of the recapitalized share structure, competitive conditions in the premium cigar market, regulatory changes, capital availability, and general economic conditions. The company undertakes no obligation to update forward-looking statements except as required by law.
INVESTOR RELATIONS CONTACT
Green Leaf Innovations, Inc.
Email: info@greenleafinnovation.com
Contact: Ryan Medico
Phone: (800) 303-6268
Website: www.greenleafinnovation.com
SOURCE: Green Leaf Innovations, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/industrial-and-manufacturing/green-leaf-innovations-inc.-announces-finra-approval-of-reverse-stock-1120444
