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Wheels Up to Increase Per-share Price, Reports 10% More Losses

Wheels Up to Increase Per-share Price, Reports 10% More Losses

Wheels Up proposed a reverse stock split to increase its per-share price, following increasing financial losses and a falling share price.

According to an SEC filing released on April 4, the shareholders will vote on May 31 to decide whether to carry out a reverse stock split, which will see the US charter company reduce the number of outstanding shares and increase the stock’s price in order to avoid the potential of a delisting on the New York Stock Exchange.

The Wheels Up share price was USD$0.49 on April 6, down 56% from a month earlier.

The company adjusted its unaudited full-year results for 2022, with losses widening to USD$555 million from the earlier record of USD$507 million, up by nearly 10 percent. The adjusted net loss was more than twice the loss of USD$197 million reported in 2021.

Supply constraints and increased operating costs, as well as an increase in equity-based compensation expense, have all contributed to the company’s widened losses.

In a separate SEC filing, the non-cash goodwill impairment charge was amended to USD$180 million from the previous USD$132 million for the last quarter and full year of 2022.

In March 2023, the company announced a restructuring plan and decided to reduce around USD$30 million in annual staff costs in order to get the company profitable in 2024.

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