Function(x) Inc. (NASDAQ: FNCX) recently announced that it has started trading on a reverse split-adjusted basis as of the opening of the market on Friday, September 16, 2016. The company’s common stock shares will be traded at a ratio of 1-for-20 shares. The reverse stock split was approved by Function(x)’s board of directors the previous week in order for the company to recover and stay within the lowest closing bid price of $1.00 per share to maintain its NASDAQ status. Function(x) will continue to trade under the same ticker symbol of FNCX.
As a result, every 20 pre-split outstanding shares of common stock will now become one new share of common stock without any input from shareholders. This means that Function(x)’s shares of common stock issued and outstanding will go down from about 60,475,058 shares before the split to about 3,023,753 shares after the split. As no fractional shares are to be issued after the split, the company has agreed to pay owners with fractional shares in cash after the reverse stock split.
In a news release, Robert F.X. Sillerman, CEO and executive chairman of Function(x) Inc., commented, “With this reverse stock split, we expect to satisfy Nasdaq’s minimum bid price requirement and to maintain compliance with that requirement as we move forward with the development of our business. We are highly confident about the long-term prospects of our Company as we continue to make Function(x) a premier destination for digital content consumption.”
For more information, visit www.Functionx.co
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