Snail Inc (NASDAQ:SNAL), the video game developer and publisher, will carry out a 1-for-5 reverse stock split, investors were told.
The move is intended to help the company regain compliance with Nasdaq's requirement that listed shares maintain a minimum bid price of at least $1.
The split becomes effective at 11.59 pm Eastern Time on 2 July, with the shares trading on a split-adjusted basis from the market open on 6 July.
The Class A stock will continue to trade under the symbol SNAL.
The split will reduce the company's Class A shares to roughly 3.1 million from around 15.5 million, and its Class B shares to roughly 5.7 million from around 28.7 million.
Each shareholder's ownership percentage will remain unchanged, aside from the effect of fractional shares.
Holders otherwise entitled to a fractional share will instead receive a cash payment based on the average closing price over the ten days before the split takes effect.
The company said the split would also make the share price more attractive to a broader group of institutional and retail investors.
Holders of 95% of Snail's voting power approved a split within a range of 1-for-2 to 1-for-10 in June, leaving the board to set the final ratio.