Dolphin Entertainment, Inc. Announces 1-for-2 Reverse Stock Split

Rhea-AI Summary

Dolphin Entertainment, Inc. (NASDAQ:DLPN) has announced a 1-for-2 reverse stock split effective October 16, 2024, at 12:01 a.m. EDT. This move aims to regain compliance with NASDAQ's $1.00 minimum bid price requirement and increase flexibility for future business purposes. The split will reduce outstanding common stock from approximately 22.2 million to 11.1 million shares. Trading on a split-adjusted basis will begin on October 16, 2024, with a new CUSIP number: 25686H 308.

Shareholders will receive one whole share for every two shares held, with no fractional shares or cash compensation issued. The company's transfer agent, Nevada Agency and Transfer Company, will provide instructions to shareholders of record for exchanging shares. Shareholders with electronic holdings in brokerage accounts need not take action, as changes will be reflected automatically.

Positive

• Potential to regain compliance with NASDAQ's $1.00 minimum bid price requirement
• Increased flexibility for future business and financial purposes

Negative

• Reduction in the number of outstanding shares from 22.2 million to 11.1 million
• Potential shareholder confusion or dissatisfaction with the reverse split process

Insights

Financial Analyst

The 1-for-2 reverse stock split announced by Dolphin Entertainment is a significant move aimed at addressing NASDAQ compliance issues and improving the company's financial flexibility. This action will reduce the number of outstanding shares from about 22.2 million to 11.1 million, potentially doubling the stock price mathematically.

The primary goal is to regain compliance with NASDAQ's $1.00 minimum bid price requirement, which is important for maintaining the company's listing status. This move could help attract institutional investors who often have restrictions on investing in low-priced stocks.

However, investors should note that while the share price may increase, the company's market capitalization and the value of each shareholder's stake remain unchanged. The effectiveness of this strategy in maintaining long-term price levels depends on the company's underlying performance and market perception.

For Dolphin Entertainment, with a current market cap of about $14.2 million, this move could be seen as a defensive strategy. It's important to monitor how the market reacts post-split and whether it leads to improved trading liquidity or investor interest.

Market Research Analyst

Dolphin Entertainment's reverse stock split is a strategic move that warrants close attention from investors. While it doesn't directly impact the company's fundamental value, it can have significant market implications:

• Investor Perception: The higher post-split share price might improve the stock's image, potentially attracting new investors who view sub-dollar stocks as risky.
• Index Inclusion: A higher share price could make the stock eligible for inclusion in certain stock indices, potentially increasing demand.
• Short-term Volatility: Expect increased volatility immediately following the split as the market adjusts to the new share structure.
• Long-term Performance: Historical data shows mixed results for companies post-reverse split. Success often depends on the underlying business performance rather than the split itself.

Investors should closely monitor trading volume and price action post-split, as well as any changes in institutional ownership or analyst coverage. These factors can provide insights into the market's reception of this corporate action and its potential long-term impact on DLPN's stock performance.

MIAMI, FL / ACCESSWIRE / October 14, 2024 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, today announced that the company will effect a 1-for-2 reverse split of its issued and outstanding shares of common stock. The reverse stock split will become effective October 16, 2024 at 12:01 a.m. EDT. Shares of the company's common stock will trade on a split-adjusted basis on The NASDAQ Capital Market, as of the opening of trading on Wednesday, October 16, 2024. The new CUSIP number for the Company's common stock will be 25686H 308.

The reverse stock split is being effected as part of the company's plan to regain compliance with the $1.00 minimum bid price continued listing requirement of The NASDAQ Capital Market and to have the additional authorized shares of common stock available to provide additional flexibility regarding the potential use of shares of common stock for business and financial purposes in the future.

When the reverse stock split becomes effective, every two shares of Dolphin Entertainment, Inc.'s common stock will be automatically combined into one new share of common stock. No fractional shares will be issued, and no cash or other consideration will be paid. Instead, the company will issue one whole share of the post-split common stock to any shareholder of record who otherwise would have received a fractional share as a result of the reverse stock split. The reverse stock split will reduce the number of shares of outstanding common stock from approximately 22.2 million shares to approximately 11.1 million shares.

Dolphin Entertainment, Inc.'s transfer agent, Nevada Agency and Transfer Company, will provide instructions to shareholders of record regarding the process for exchanging shares. Shareholders who are holding their shares in electronic form at their brokerage firms do not have to take any action as the effects of the reverse stock split will automatically be reflected in their brokerage accounts.

About Dolphin Entertainment, Inc.
Dolphin Entertainment, Inc. (NASDAQ:DLPN), founded in 1996 by Bill O'Dowd, has evolved from its origins as an Emmy-nominated television, digital, and feature film content producer to a company with three dynamic divisions: Dolphin Entertainment, Dolphin Marketing, and Dolphin Ventures.

Dolphin Entertainment: This legacy division, where it all began, has a rich history of producing acclaimed television shows, digital content, and feature films. With high-profile partnerships like IMAX and notable projects including "The Blue Angels," Dolphin Entertainment continues to set the standard in quality storytelling and innovative content creation.

Dolphin Marketing: Established in 2017, this division has become a powerhouse in public relations, influencer marketing, branding strategy, talent booking, and special events. Comprising top-tier companies such as 42West, The Door, Shore Fire, Special Projects, and The Digital Dept., Dolphin Marketing serves a wide range of industries, from entertainment, music and sports to hospitality, fashion and consumer products.

Dolphin Ventures: This division leverages Dolphin's best-in-class cross-marketing acumen and business development relationships to create, launch and/or accelerate innovative ideas and promising products, events and content in our areas of expertise. Key ventures include collaborations with Rachael Ray for Staple Gin and Mastercard Midnight Theatre. The company is actively exploring new projects in AI, beauty, and sports.

Contact:
James Carbonara/Hayden IR
(646)-755-7412
james@haydenir.com

SOURCE: Dolphin Entertainment

View the original press release on accesswire.com

FAQ

When will Dolphin Entertainment's (DLPN) 1-for-2 reverse stock split take effect?

Dolphin Entertainment's 1-for-2 reverse stock split will become effective on October 16, 2024, at 12:01 a.m. EDT.

What is the new CUSIP number for Dolphin Entertainment (DLPN) after the reverse split?

The new CUSIP number for Dolphin Entertainment's common stock after the reverse split will be 25686H 308.

How many shares of Dolphin Entertainment (DLPN) will be outstanding after the reverse split?

After the 1-for-2 reverse split, Dolphin Entertainment's outstanding common stock will be reduced from approximately 22.2 million shares to approximately 11.1 million shares.

Why is Dolphin Entertainment (DLPN) implementing a reverse stock split?

Dolphin Entertainment is implementing the reverse stock split to regain compliance with NASDAQ's $1.00 minimum bid price requirement and to increase flexibility for potential future business and financial purposes.