MarketWise Announces 1-for-20 Reverse Stock Split
MarketWise (NASDAQ: MKTW) has announced a 1-for-20 reverse stock split effective April 2, 2025, with trading on the adjusted basis beginning April 3, 2025. The split will reduce Class A common stock from approximately 49.5 million to 2.47 million shares and Class B common stock from 276.6 million to 13.8 million shares.
The move aims to bring MKTW's stock price into compliance with Nasdaq's minimum bid requirement of $1.00 per share and attract institutional investors. The authorized Class A common stock will decrease from 950 million to 47.5 million shares, while Class B will reduce from 300 million to 15 million shares. Fractional shares will be paid in cash based on the April 2, 2025 closing price.
MarketWise (NASDAQ: MKTW) ha annunciato uno split azionario inverso di 1 per 20 che entrerà in vigore il 2 aprile 2025, con il trading sulla base rettificata che inizierà il 3 aprile 2025. Questo split ridurrà le azioni ordinarie di Classe A da circa 49,5 milioni a 2,47 milioni di azioni e le azioni ordinarie di Classe B da 276,6 milioni a 13,8 milioni di azioni.
Questa mossa mira a portare il prezzo delle azioni di MKTW in conformità con il requisito di offerta minima di Nasdaq di 1,00 dollaro per azione e ad attrarre investitori istituzionali. Le azioni ordinarie di Classe A autorizzate diminuiranno da 950 milioni a 47,5 milioni di azioni, mentre le azioni di Classe B scenderanno da 300 milioni a 15 milioni di azioni. Le azioni frazionarie saranno pagate in contanti in base al prezzo di chiusura del 2 aprile 2025.
MarketWise (NASDAQ: MKTW) ha anunciado una división de acciones inversa de 1 por 20 que entrará en vigor el 2 de abril de 2025, con el comercio sobre la base ajustada comenzando el 3 de abril de 2025. La división reducirá las acciones ordinarias de Clase A de aproximadamente 49,5 millones a 2,47 millones de acciones y las acciones ordinarias de Clase B de 276,6 millones a 13,8 millones de acciones.
Este movimiento tiene como objetivo llevar el precio de las acciones de MKTW a cumplir con el requisito de oferta mínima de Nasdaq de 1,00 dólar por acción y atraer a inversores institucionales. Las acciones ordinarias de Clase A autorizadas disminuirán de 950 millones a 47,5 millones de acciones, mientras que las acciones de Clase B se reducirán de 300 millones a 15 millones de acciones. Las acciones fraccionarias se pagarán en efectivo según el precio de cierre del 2 de abril de 2025.
MarketWise (NASDAQ: MKTW)는 2025년 4월 2일부터 시행되는 1대 20의 주식 분할을 발표했으며, 조정된 기준으로 거래는 2025년 4월 3일부터 시작됩니다. 이 분할은 A 클래스 보통주를 약 4950만 주에서 247만 주로, B 클래스 보통주를 2억 7660만 주에서 1380만 주로 줄입니다.
이 조치는 MKTW의 주가를 나스닥의 최소 입찰 요건인 주당 1.00달러에 맞추고 기관 투자자를 유치하기 위한 것입니다. 승인된 A 클래스 보통주는 9억 5000만 주에서 4750만 주로 감소하고, B 클래스는 3억 주에서 1500만 주로 줄어듭니다. 분할된 주식은 2025년 4월 2일 종가를 기준으로 현금으로 지급됩니다.
MarketWise (NASDAQ: MKTW) a annoncé un regroupement d'actions de 1 pour 20 qui entrera en vigueur le 2 avril 2025, avec le début des transactions sur la base ajustée le 3 avril 2025. Ce regroupement réduira les actions ordinaires de Classe A d'environ 49,5 millions à 2,47 millions d'actions et les actions ordinaires de Classe B de 276,6 millions à 13,8 millions d'actions.
Cette initiative vise à amener le prix de l'action MKTW en conformité avec l'exigence de prix d'offre minimum de Nasdaq de 1,00 $ par action et à attirer des investisseurs institutionnels. Le nombre d'actions ordinaires de Classe A autorisées sera réduit de 950 millions à 47,5 millions d'actions, tandis que le nombre d'actions de Classe B passera de 300 millions à 15 millions d'actions. Les actions fractionnaires seront payées en espèces en fonction du prix de clôture du 2 avril 2025.
MarketWise (NASDAQ: MKTW) hat einen Reverse-Split von 1 zu 20 angekündigt, der am 2. April 2025 in Kraft tritt, wobei der Handel auf der angepassten Basis am 3. April 2025 beginnt. Der Split wird die Class-A-Stammaktien von etwa 49,5 Millionen auf 2,47 Millionen Aktien und die Class-B-Stammaktien von 276,6 Millionen auf 13,8 Millionen Aktien reduzieren.
Dieser Schritt zielt darauf ab, den Aktienkurs von MKTW in Übereinstimmung mit dem Mindestgebotsanforderung von Nasdaq von 1,00 USD pro Aktie zu bringen und institutionelle Investoren anzuziehen. Die genehmigten Class-A-Stammaktien werden von 950 Millionen auf 47,5 Millionen Aktien verringert, während die Class-B-Aktien von 300 Millionen auf 15 Millionen Aktien sinken werden. Bruchteile von Aktien werden basierend auf dem Schlusskurs vom 2. April 2025 in bar ausgezahlt.
- Helps maintain Nasdaq listing compliance
- Could attract institutional investors
- Stockholders overwhelmingly approved the split
- Company reports top-line growth and improving margins
- Indicates previous trading price was below Nasdaq requirements
- No change in company's market capitalization
- May signal underlying business challenges
Insights
MarketWise's 1-for-20 reverse stock split represents a significant technical adjustment primarily designed to maintain Nasdaq compliance, where the minimum bid price requirement is $1.00. With the current share price at
The unusually steep 1-for-20 ratio is noteworthy - most companies opt for less dramatic 1-for-5 or 1-for-10 splits. This aggressive approach suggests management wants substantial headroom above the minimum requirement, not just bare compliance. It will drastically reduce the share count, with Class A shares decreasing from 49.5 million to 2.5 million and Class B shares from 276.6 million to 13.8 million.
While the CEO frames this as making the stock more attractive to institutional investors, it's important to understand that the company's market capitalization remains unchanged at approximately
Investors should be aware that fractional shares resulting from the split will be paid in cash, potentially forcing some smaller shareholders to exit positions involuntarily. Additionally, reverse splits often face market skepticism and can trigger renewed selling pressure, as they're typically associated with companies facing financial challenges.
The CEO's reference to "top line growth and improving margins" without specific metrics offers little concrete evidence of a fundamental turnaround to accompany this technical adjustment.
BALTIMORE, March 31, 2025 (GLOBE NEWSWIRE) -- MarketWise, Inc. (NASDAQ: MKTW) (“MarketWise” or “the Company”), a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors, announced that it will effect a 1-for-20 reverse stock split of its common stock, par value
The Company’s stockholders approved the reverse stock split at a special meeting held on March 20, 2025, subject to the discretion of the Board of Directors to abandon the reverse stock split.
Dr. David “Doc” Eifrig, Interim Chief Executive Officer, commented, “I am pleased that our stockholders overwhelmingly approved our proposal to effect a reverse stock split, which will bring our per share price into a range that is more commensurate with our current market capitalization. We believe the higher price per share will be more attractive to certain institutional investors, will enable us to meet the Nasdaq continued listing requirements, and will improve the overall market perception of our business. When coupled with our top line growth and improving margins, we believe a reverse stock split positions us well to continue to execute our strategic plan.”
When the reverse stock split becomes effective, every 20 shares of the Company’s issued and outstanding common stock will combine into one issued and outstanding share of common stock, without affecting the par value per share. The reverse stock split will reduce the Company’s issued and outstanding Class A common stock from approximately 49,487,262 shares1 to approximately 2,474,363 shares and the issued and outstanding Class B common stock from approximately 276,623,803 shares to approximately 13,831,190 shares.
Proportional adjustments will be made to (i) the per share exercise price and number of shares issuable upon the exercise of outstanding equity awards; and (ii) the number of shares reserved for issuance pursuant to the Company’s equity incentive plan and employee stock purchase plan.
The number of shares of common stock authorized under the Company’s Certificate of Incorporation will also be proportionately decreased. The authorized Class A common stock will be reduced from 950,000,000 shares to 47,500,000 shares and the authorized Class B common stock from 300,000,000 shares to 15,000,000 shares. The number of authorized shares of preferred stock will remain unchanged.
Fractional shares that would otherwise be issuable because of the reverse stock split will be paid in cash, with reference to the closing price of the Company’s common stock on April 2, 2025 (adjusted to give effect to the reverse stock split), without interest. Stockholders whose shares are held in brokerage accounts should direct questions concerning the reverse stock split to their broker. Stockholders of record may direct questions to the Company’s transfer agent, Continental Stock Transfer & Trust, by telephone at (800) 509-5586 or via email at cstmail@continentalstock.com
The reverse stock split is intended to bring the Company into compliance with the minimum bid price requirement for maintaining the listing of its common stock on the Nasdaq Global Market, and to make the bid price more attractive to a broader group of institutional and retail investors. The Nasdaq Global Market requires, among other things, that a listed company’s common stock maintain a minimum bid price of at least
About MarketWise
Founded with a mission to level the playing field for self-directed investors, today MarketWise is a leading multi-brand subscription services platform providing premium financial research, software, education, and tools for investors.
With more than 25 years of operating history, MarketWise serves a community of millions of free and paid Subscribers. MarketWise’s products are a trusted source for high-value financial research, education, actionable investment ideas, and investment software. MarketWise is a
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s performance and ability to generate cash flow. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including those described in the “Risk Factors” section of the Company’s most recently filed periodic reports on Forms 10-K and 10-Q. The Company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law.
MarketWise Investor Relations Contact Information
(800) 290-4113
Email: ir@marketwise.com
MarketWise Media Contact
Email: media@marketwise.com
1 Inclusive of 3,051,000 Sponsor Earnout Shares and 2,000,000 Management Earnout Shares that are considered contingently issuable shares. For more information, see Note 16 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
