National CineMedia (NCMI) Announces 1-for-10 Reverse Stock Split
National CineMedia, Inc. (Nasdaq: NCMI) (“the Company”), the handling member and owner of National CineMedia, LLC (“NCM LLC”), the operator of the biggest movie theater marketing platform in the U.S., today revealed it has actually effectuated a 1-for-10 Reverse Stock Split of its Common Stock. The Company’s Common Stock will immediately start trading on a split-adjusted basis at the opening of the marketplace on August 4, 2023, under the existing trading sign “NCMI.”
At the Special Meeting of Stockholders hung on August 2, 2023, the Company’s investors authorized a Reverse Stock Split at a ratio variety in between 1-for-10 and 1-for-100. Following the Special Meeting of Stockholders, on August 2, 2023, the Company’s Board of Directors voted to authorize the Reverse Stock Split and developed a 1-for-10 ratio. The Reverse Stock Split will affect all shares of Common Stock and minimize the variety of public shares from 174,191,498 to roughly 17,419,150.
The Reverse Stock Split will make it possible for the Company to satisfy its commitments under the Restructuring Support Agreement in between the Company, NCM LLC and particular of NCM LLC’s protected lending institutions, and moves NCM LLC one action better to attaining its Chapter 11 Plan of Reorganization. The Reverse Stock Split is likewise anticipated to enable the Company to gain back compliance with the $1.00 minimum typical closing rate requirement of Nasdaq.
The Company did not provide fractional shares in connection with the Reverse Stock Split. Instead, any investors’ Common Stock who would have been entitled to get fractional shares as an outcome of the Reverse Stock Split will have their shares rounded in accordance with the authorized Reverse Stock Split. On August 2, 2023, the Company submitted a Certificate of Amendment with the Securities and Exchange Commission (the “SEC”) to effectuate the authorized 1-for-10 Reverse Stock Split.