RLJ Entertainment Announces Reverse Stock Split9 Jun, 2016 By: Erik Gruenwedel
Facing delisting of its stock, RLJ Entertainment June 9 announced its board of directors approved a 1-for-3 reverse stock split of its common stock, effective June 24.
The Baltimore, Md.-based distributor created by the merger of Image Entertainment and Acorn Media Group, had received a delisting warning from Nasdaq after its shares closed below $1 for 30 consecutive business days.
The reverse stock split will reduce the number of shares of RLJ Entertainment’s outstanding common stock from about 14.1 million to 4.7 million. If the reverse had taken place today, RLJ Entertainment’s stock would have closed at $1.71 per share, up from 57 cents per share.
In a statement, the distributor said there is no assurance the split would have the desired effect of raising the closing bid price of the common stock to meet the minimum bid requirement.