Samuel Goldwyn Co. is proposing a reverse stock split, thereby reducing the number of shares outstanding by three-quarters.

For every four shares held, investors would receive one new share from the indie film distributor and theater owner.

The move could give the stock a boost in value, since it has been languishing around $ 2.25.

In a filing with the Securities & Exchange Commission, Goldwyn proposes a public offering of as many as 5.75 million shares — or 1,437,500 shares after giving effect to the proposed 1-for-4 reverse stock split.

The company said it expects to complete the public offering by late June.

Goldwyn said its board recommended the action and that the reverse split, once approved by shareholders, would be effective by the end of May.

Samuel Goldwyn Jr., the company’s chairman and chief executive, has the power to vote about 86% of the common stock and intended to consent to the reverse split. His affirmative vote alone would be sufficient to adopt the proposal, the company said.

Follow @Variety on Twitter for breaking news, reviews and more
Post A Comment 0