Gaucho Group completes reverse stock split

Gaucho Group announced the completion of its reverse stock split, which took effect at 12:01 a.m. on May 1, 2024. This corporate action follows the detailed announcement made on April 29, 2024, and is part of a broader strategy to enhance stockholder value and ensure compliance with Nasdaq listing standards. Accompanying this corporate action, Scott Mathis, CEO and Founder of Gaucho Holdings, has addressed stockholders directly in a letter filed with the SEC as a Current Report on Form 8-K, detailing the rationale behind the reverse stock split. The letter outlines several key reasons for the reverse split, reaffirming the Company’s commitment to strategic adjustments aimed at protecting and enhancing stockholder investments. Scott Mathis commented: “It is our mission to protect your investment and find ways to bring value back to our stockholders. This reverse split addresses several critical issues that have affected our stock, such as past dilutions linked to convertible notes and potential naked short selling. Key benefits of this strategic move include regaining compliance with Nasdaq listing requirements, making our stock marginable, and potentially attracting investment from major funds. Moreover, it aids in reducing our float, increasing the possibility of a short squeeze on positive developments, and improving our standing in financial indices such as the Russell 2000. Each of these steps is designed to enhance the stability and visibility of our shares in the capital markets.”