The Sezzle Inc (ASX: SZL) share price is having a very strong start to the session on Tuesday morning.
At the time of writing, the buy now pay later (BNPL) provider's shares are up a sizeable 10% to 58.5 cents.
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Why is the Sezzle share price racing higher?
Investors have been bidding this ASX All Ords share higher today after the company announced plans to list on the Nasdaq Global Market.
According to the release, Sezzle shares will continue to trade on the ASX All Ords concurrently despite this change.
However, one thing that will have to change is the Sezzle share price. Given the Nasdaq's minimum US$4.00 bid price, the company will undertake a reverse split if shareholders approve.
Sezzle hasn't revealed what its reverse split would be. But if it were a 20-1 reverse split, investors would see every 20 Sezzle shares they owned reduced to a single share and the price per share increased 20 times. There would be no change to the overall value of your holding.
In this example, it would mean the Sezzle share price increases to $11.70 from 58.5 cents.
The company also stressed that it isn't seeking to raise capital by listing on the Nasdaq. It does, however, hope that the move expands its investor base.
Sezzle's Chairman and CEO, Charlie Youakim, commented:
A listing on the Nasdaq is a natural evolution for Sezzle given the Company is already filing the necessary reports with the SEC. Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.
The company intends to provide guidance to investors on the timing of the stockholder meeting, but anticipates completing everything no later than 30 September.
