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Highlights
- Dolphin Entertainment, Inc. is enacting a 1-for-2 reverse stock split to meet NASDAQ’s minimum bid price requirement, reducing its outstanding common stock while aiming to enhance flexibility for future business operations.
- This reverse stock split will reduce the total number of Dolphin Entertainment's outstanding shares, allowing the company to maintain its NASDAQ listing and streamline its stock structure for potential future opportunities.
- Shareholders will have their holdings adjusted automatically, ensuring a seamless transition without the need for any direct action, with the new share structure taking effect on October 16, 2024.
Dolphin Entertainment, Inc., a leading entertainment marketing and content development company in Communication sector, has announced a 1-for-2 reverse stock split, effective October 16, 2024. Listed on NASDAQ under the ticker DLPN, Dolphin operates within the entertainment sector, producing and marketing content across various platforms. This reverse stock split is intended to help the company comply with NASDAQ’s minimum bid price requirement, while also providing flexibility for future business ventures.
Strategic Reasons for the Reverse Stock Split
Dolphin Entertainment (NASDAQ:DLPN) decision to initiate a 1-for-2 reverse stock split follows its aim to maintain compliance with NASDAQ’s listing rules, which require a minimum bid price of $1.00 per share. By reducing the number of outstanding shares, Dolphin can boost its share price, helping it meet the exchange’s criteria while continuing its operations on the NASDAQ. Beyond compliance, this move also provides Dolphin with a streamlined stock structure, which could offer greater flexibility for business strategies moving forward, such as fundraising or mergers.
Impact on Shareholders
For shareholders, the reverse stock split means that they will receive one new share for every two shares currently held. No fractional shares will be issued, and the company has stated that no cash compensation will be provided for fractional shares. Shareholders with electronic holdings in brokerage accounts will see their shares adjusted automatically, ensuring a smooth and seamless transition. Meanwhile, those with physical stock certificates will receive instructions from the company’s transfer agent, Nevada Agency and Transfer Company, on how to exchange their shares.
Dolphin Entertainment’s reverse stock split marks an important step for the company in maintaining its NASDAQ listing and enhancing its flexibility for future endeavors. By adjusting its stock structure, the company is positioning itself to remain competitive and adaptable in the entertainment sector, with continued focus on marketing and producing content for a wide range of platforms.
