Kustom Entertainment Reduces Shares via 1-for-5 Reverse Split to Meet Nasdaq $1 Minimum
Kustom Entertainment completed a 1-for-5 reverse stock split effective April 22, reducing outstanding shares from 2,633,063 to 526,613 and authorized common shares from 66,666,666 to 13,333,333. The adjustment, with a new CUSIP 25382T606, targets a per-share trading price above Nasdaq’s $1 minimum to maintain its Capital Market listing.
1. Reverse Stock Split Implementation
The board approved a 1-for-5 reverse stock split on April 5, effective at market open on April 22, reducing outstanding common shares from 2,633,063 to 526,613. Trading will reflect the new CUSIP 25382T606 on the Nasdaq Capital Market.
2. Capital Stock Reduction
Authorized common shares were cut from 66,666,666 to 13,333,333, while authorized preferred stock remains unchanged. Fractional shares will be rounded up and certificate holders will receive exchange instructions from the transfer agent.
3. Nasdaq Listing Compliance
This capital restructuring is designed to elevate the per-share trading price above Nasdaq’s $1.00 minimum bid requirement, ensuring Kustom Entertainment retains its listing on the Capital Market tier.