Direct Digital Holdings Plans 4-for-1 Reverse Split Reducing Shares to 0.7M
Direct Digital Holdings will effect a 4-for-1 reverse stock split on April 27, reducing Class A shares from approximately 2.8 million to 0.7 million to maintain Nasdaq’s $1.00 minimum bid requirement. The Board retains authority for up to 250-to-1 splits through December 26, 2026.
1. Reverse Split Details
Direct Digital Holdings will effect a 4-for-1 reverse stock split on April 27, converting every four Class A shares into one share and reducing outstanding Class A shares from approximately 2.8 million to 0.7 million and Class B shares from 0.17 million to 0.04 million.
2. Purpose and Nasdaq Compliance
The split is designed to satisfy Nasdaq’s minimum $1.00 bid price requirement and preserve the Company’s listing, following a prior 55-for-1 split earlier in January.
3. Shareholder Mechanics
No fractional shares will be issued; holders will receive cash in lieu of fractions. The new CUSIP is 25461T303, and shareholders holding through brokers or nominees need not take action.
4. Future Authorization
The Board retains the authority to implement reverse splits at ratios up to 250-to-1 through December 26, 2026, providing flexibility to address future listing compliance needs.