Reacting to is plunging share price, the board of Cineverse approved at 1 for 20 reverse stock split.
The company noted that the split would increase the price of its outstanding shares and enable it to meet the listing requirements of the Nasdaq Capital Market and continue to trade under the symbol CNVS.
Cineverse shares closed Wednesday at 30 cents a share, down from a high of 77 cents in August. In pre-market trading, the shares were down to 27 cents.
Cineverse, until last month known as Cinedigm, has been attempting to pivot from its old business of supplying digital equipment to movie theaters to streaming company.
Also: McGurk: Be Prepared to Pivot Every Two Years (David Bloom)
Looking to reverse the sliding price of its stock, Cinedigm announced a program to repurchase up to 10 million shares of stock in March.
“I personally own more than 2 million shares of Cinedigm stock, so I understand the frustration that all our shareholders are feeling now, particularly given our strong operational and financial performance,” company CEO Chris McGurk said at the time. “With this repurchase program, we are choosing to signal that we fully agree with the analysts who study and follow Cinedigm, and who have targeted our stock price at $2.25-$5 per share.”
The company reported $4.9 million in net income in its fiscal third quarter.
The reverse stock split will go into effect at 12:01 a.m. Eastern Time on June 9.
