Skillz Inc said its board of directors has approved a 1-for-20 reverse stock split of its Class A and Class B shares in a move aimed at returning it to compliance with the continued listing standards of the New York Stock Exchange.
The Las Vegas, Nevada-based mobile games platform’s shares fell 13% to $0.52 in pre-market trading.
In a statement, Skillz said the reverse stock split will result in every 20 shares of its issued and outstanding common stock being converted automatically into one share without any change in the par value per share.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in its equity, except when it would result in a stockholder owning a fractional share.
Stockholders that would receive a fractional share will instead receive a cash payment directly in their brokerage account equivalent to the value of the fractional share, the company added.
The company said its A shares will begin trading on a split-adjusted basis when the market opens on June 26, 2023.
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