LOS
ANGELES, June 8, 2023 /PRNewswire/ -- Cineverse
Corp. ("Cineverse" or the "Company") (NASDAQ: CNVS), a global
streaming technology and entertainment company with one of the
world's largest portfolios of streaming channels and streaming
content libraries, today announced that its Board of Directors has
approved a 1-for-20 reverse stock split of the Company's issued and
outstanding Class A common stock (the "Reverse Stock Split"). The
Reverse Stock Split will go into effect at 12:01 a.m. Eastern Time on June 9, 2023. The Company's common stock is
expected to begin trading on The Nasdaq Capital Market on a
split-adjusted basis on June 9,
2023.
The Company's stockholders approved the Reverse Stock Split at
the special meeting of stockholders held on May 30, 2023, at a ratio ranging from 1-for-2 to
1-for-20, with such ratio and the implementation and timing of such
Reverse Stock Split to be determined by the Company's Board of
Directors.
The principal purpose of the Reverse Stock Split is to decrease
the total number of shares of common stock outstanding and
proportionately increase the market price of the common stock in
order to meet the continued listing requirements of The Nasdaq
Capital Market. The Company's common stock will continue to trade
under the symbol "CNVS."
As a result of the Reverse Stock Split, every 20 shares of the
Company's common stock issued and outstanding will be automatically
reclassified into one new share of common stock. The Reverse Stock
Split will not modify any rights or preferences of the shares of
the Company's common stock. Proportionate adjustments will be made
to the exercise prices and the number of shares underlying the
Company's outstanding equity awards, as applicable, as well as to
the number of shares issuable under the Company's equity incentive
plans. The common stock issued pursuant to the Reverse Stock Split
will remain fully paid and non-assessable. The Reverse Stock Split
will not affect the number of authorized shares of common stock or
the par value of the common stock nor will it change the authorized
shares of Preferred Stock or the relative voting power of such
holders of our outstanding common stock and Preferred Stock.
No fractional shares will be issued in connection with the
Reverse Stock Split. Stockholders who would otherwise be entitled
to receive fractional shares as a result of the Reverse Stock Split
will be entitled to a cash payment in lieu thereof after the sale
on the open market of the aggregated fractional shares by the
exchange agent for the reverse split.
American Stock Transfer & Trust Company has been appointed
by the Company to act as its exchange agent for the reverse stock
split. Stockholders owning pre-split shares via a bank, broker or
other nominee will have their positions automatically adjusted to
reflect the Reverse Stock Split and will not be required to take
further action in connection with the Reverse Stock Split, subject
to brokers' particular processes. Similarly, registered
stockholders holding pre-split shares of the Company's common stock
electronically in book-entry form are also not required to take
further action in connection with the Reverse Stock Split. Holders
of certificated shares will be contacted by the Company or its
exchange agent with further details about how to surrender old
certificates.
Additional information about the Reverse Stock Split can be
found in the Company's definitive proxy statement filed with the
Securities and Exchange Commission (the "SEC") on April 28, 2023, which is available free of charge
at the SEC's website, www.sec.gov, and on the Company's
website at www.cineverse.com.
About Cineverse
Cineverse is a global streaming
technology and entertainment company with one of the world's
largest portfolios of streaming channels and streaming content
libraries, all powered by its advanced, proprietary technology
platform. Cineverse currently features enthusiast brands for
subscription video on demand (SVOD), advertising-based video on
demand (AVOD) and free, ad-supported streaming television (FAST)
channels. Cineverse entertains consumers around the globe by
providing premium feature film and television series, enthusiast
streaming channels and technology services to some of the world's
largest media, retail and technology companies. For more
information, please visit www.cineverse.com.
Safe Harbor Statement
Investors and readers are
cautioned that certain statements contained in this document, as
well as some statements in periodic press releases and some oral
statements of Cineverse officials during presentations about
Cineverse, along with Cineverse's filings with the Securities and
Exchange Commission, including Cineverse's registration statements,
quarterly reports on Form 10-Q and annual report on Form 10-K, are
"forward-looking'' statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act'').
Forward-looking statements include statements that are predictive
in nature, which depend upon or refer to future events or
conditions, which include words such as "expects," "anticipates,''
"intends,'' "plans,'' "could," "might," "believes,'' "seeks,"
"estimates'' or similar expressions. In addition, any statements
concerning future financial performance (including future revenues,
earnings, or growth rates), ongoing business strategies or
prospects, and possible future actions, which may be provided by
Cineverse's management, are also forward-looking statements as
defined by the Act. Forward-looking statements are based on current
expectations and projections about future events and are subject to
various risks, uncertainties, and assumptions about Cineverse, its
technology, economic and market factors, and the industries in
which Cineverse does business, among other things. These statements
are not guarantees of future performance, and Cineverse undertakes
no specific obligation or intention to update these statements
after the date of this release.
For additional information, please contact:
At Cineverse
Julie Milstead
424-281-5411
investorrelations@cineverse.com
The Equity Group Inc.
Carolyne Sohn
408-538-4577
csohn@equityny.com
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SOURCE Cineverse Corp.