Reported Earlier, Esports Entertainment Announces 1-For-400 Reverse Stock Split, Effective At 4:01 PM ET On December 21, 2023
Portfolio Pulse from Benzinga Newsdesk
Esports Entertainment Group, Inc. (NASDAQ:GMBL) announced a 1-for-400 reverse stock split effective December 21, 2023, to reduce outstanding shares from 426 million to approximately 1.065 million. The split aims to maintain compliance with Nasdaq's minimum equity listing requirements and will adjust terms for stock options, warrants, and convertible preferred stock. The company plans to seek stockholder approval to increase authorized shares at the annual meeting. No fractional shares will be issued, and shareholders will not need to take action as adjustments will be made automatically.
December 20, 2023 | 3:33 pm
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Esports Entertainment Group, Inc. (NASDAQ:GMBL) undergoes a 1-for-400 reverse stock split to meet Nasdaq listing requirements, reducing outstanding shares significantly.
The reverse stock split is a neutral to slightly negative signal as it indicates the company is trying to meet listing requirements due to a low share price. While it does not dilute current shareholders, it often reflects underlying issues with the stock's performance. The short-term impact on the stock price could be neutral to negative as the market absorbs the implications of the reverse split.
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