NAPLES, Fla. - Beasley Broadcast Group Inc. (NASDAQ:BBGI), a multi-platform media company, announced today that its Board of Directors has approved a reverse stock split of its common stock at a 1-for-20 ratio. The move aims to comply with Nasdaq's minimum bid price requirement. The reverse stock split, already approved by stockholders on August 26, 2024, is set to be effective on September 23, 2024.
On the following day, September 24, the company's Class A Common Stock is expected to start trading on the Nasdaq on a split-adjusted basis under the existing ticker symbol "BBGI" and a new CUSIP number, 074014 200. This action will consolidate every 20 shares of issued and outstanding Class A and Class B Common Stock into one share of the respective class.
The reverse stock split will not affect the par value of the common stock or the authorized shares. Stockholders' percentage ownership and voting power will remain relatively unchanged, barring minor adjustments due to the elimination of fractional shares. These fractional shares will not be issued; instead, shareholders will receive a cash payment equivalent to the closing sales price of the Class A Common Stock on the effective date.
Equiniti Trust Company, LLC will serve as the transfer and exchange agent for the reverse stock split. Registered stockholders with shares in book-entry form will not need to take action to receive new split-adjusted shares. Those holding shares through brokers or other organizations will see their holdings automatically adjusted.
Shareholders with stock certificates will be contacted with a Letter of Transmittal to exchange their certificates for new ones. Additional details regarding the reverse stock split are available in the definitive information statement filed with the U.S. Securities and Exchange Commission on September 3, 2024, and the company's Current Report on Form 8-K filed today.
Beasley Broadcast Group operates radio stations across the United States and provides integrated marketing solutions. The company's reach extends to approximately 20 million consumers weekly across various platforms.
This article is based on a press release statement from Beasley Broadcast Group Inc.
In other recent news, Beasley Broadcast Group reported a mix of results in its second-quarter 2024 earnings. The company's total revenue saw a decline of 4.8%, and same-station revenue decreased by 2%. However, there was a notable 10.2% increase in digital revenue, which now accounts for 21.5% of the total revenue. Adjusted EBITDA also rose by 11.4% to $8.8 million.
Beasley Broadcast Group has plans in place for the latter half of the year, focusing on political revenue and digital expansion. The company's strategic plan includes revenue growth, leverage reduction, free cash flow improvement, and capital structure optimization. Despite facing challenges with declining same-station and total revenue, Beasley Broadcast Group remains optimistic about future growth opportunities, particularly from political advertising and further digital expansion.
InvestingPro Insights
As Beasley Broadcast Group Inc. (NASDAQ:BBGI) takes a strategic step with a reverse stock split to meet Nasdaq's requirements, investors and stakeholders may benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, BBGI's market capitalization stands at a modest $16.43 million. The company's Price / Book multiple, as of the last twelve months leading up to Q2 2024, is notably low at 0.11. This could indicate that the stock is potentially undervalued relative to the company's asset base. However, the same period also reflects a revenue contraction of 6.38%, signaling challenges in growth.
InvestingPro Tips highlight some concerns for BBGI, including a significant debt burden and weak gross profit margins, which are at 14.89% for the last twelve months as of Q2 2024. The company is also not paying dividends to shareholders and has not been profitable over the last twelve months. These factors could be crucial for investors considering the impact of the reverse stock split on their investment value. In contrast, BBGI's liquid assets exceed its short-term obligations, which may provide some reassurance regarding the company's ability to meet its immediate financial liabilities.
Interested parties can find a comprehensive list of 9 additional InvestingPro Tips for BBGI at InvestingPro, which could further inform investment decisions. The tips provide insights into the company's financial metrics and market performance, including its cash burn rate and stock movement over recent periods. With BBGI's next earnings date approaching on November 6, 2024, these InvestingPro Tips could prove valuable in assessing the company's future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.