The move was first weighed in April, now Beasley Media Group’s Board of Directors has set a date and details for a reverse stock split. The decision aims to regain compliance with the $1 minimum share price requirement for continued listing on the Nasdaq Capital Market.
The stock split will occur after the closing bell on September 23, with trading under the split-adjusted basis beginning at the start of business the next day, per an SEC filing.
Beasley’s majority stockholders had previously approved the reverse stock split on August 26, giving the Board discretion to determine the final ratio. The Board settled on the highest considered consolidation rate, 1-for-20, among debated 1-for-5 and 1-for-12 rates.
On the effective date, every 20 shares of issued and outstanding Common Stock will automatically convert into one share, applying to Class A and Class B stock. No fractional shares will be issued; instead, stockholders entitled to fractional shares will receive cash equivalent to the closing sales price on September 23.
The company currently has 30,705,218 outstanding common stock shares. The 1-for-20 reverse split will reduce the total number of shares to approximately 1,535,261. Post-split, each stockholder’s percentage ownership and voting power will remain essentially the same, except for minor adjustments due to the handling of fractional shares.
Equiniti Trust Company, LLC is acting as the transfer and exchange agent for the reverse stock split.
Beasley is not the only broadcaster to use a reverse stock split to its advantage recently. In June 2023, Audacy implemented a 1-for-30 reverse stock split to regain compliance with the New York Stock Exchange. SiriusXM also consolidated its stock as part of its merger with Liberty Media.
This is almost as bad as the industry wasting its breath on AM radio.
The only ones who might make money, are the Beasleys. Most of the time 20 for 1 reverse splits do not work out. I wish them well in their future endeavors.
What kind of dolts would even invest in these companies. One for twenty split is like rearranging the deck chairs on the Titanic.
Best of luck to those holding shares and those that hope to pay their bills with Beasley paychecks.
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