Nebraska Book Holdings, Inc. Announces 1-for-1,000 Reverse Stock Split

Rhea-AI Summary

Nebraska Book Holdings, Inc. has announced a 1-for-1,000 reverse stock split effective March 31, 2021. This adjustment will reduce the number of outstanding shares from approximately 790,000 to around 790 shares. Despite this change, stockholders’ percentage ownership will remain unchanged, except for potential fractional shares, which will be compensated in cash at a valuation of $2,120 per post-split share. The reverse split also includes reductions to the company's authorized shares and will be executed by an amendment to its certificate of incorporation.

Positive

• The reverse stock split will increase the stock price per share, potentially improving perceptions among investors.
• It simplifies the share structure by drastically reducing the number of outstanding shares.

Negative

• The substantial reverse split could lead to liquidity issues due to a decreased number of shares available for trading.
• If the stock price does not rise proportionally, it may signal weakness in the company's overall performance.

Nebraska Book Holdings, Inc. ("NBC") today announced that its Board of Directors has declared a 1-for-1,000 reverse stock split of the company's common stock, par value $0.001 per share, which is anticipated to be effective on March 31, 2021. At that time, each 1,000 shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. As a result of the reverse stock split, proportional adjustments will be made to the number of shares of common stock issuable upon exercise or conversion, and to the per share exercise or conversion price, of the company's outstanding warrants and other derivative securities, in each case in accordance with their terms. The reverse stock split will affect all holders of common stock uniformly and will not alter any stockholder's percentage ownership interest in NBC, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares of common stock will be issued. Any fractional shares of common stock resulting from the reverse stock split will be paid in cash, based on a valuation of $2,120.00 per post-split share. The 1-for-1,000 reverse stock split will reduce the number of outstanding shares of the company's common stock from approximately 790,000 shares to approximately 790 shares. In connection with the reverse stock split, the number of authorized shares of common stock under the company's certificate of incorporation will be reduced to 1,900 shares, and the number of authorized shares of preferred stock will be reduced to 100 shares. The par value of the common stock will remain unchanged at $0.001 per share.

NBC will effect the reverse stock split by filing an amendment to its certificate of incorporation reflecting the approved split ratio and the reduction in the number of authorized shares, but the reverse stock split may be abandoned by the Board at any time prior to effectiveness, in its discretion.

The reverse stock split was approved by a majority consent of NBC’s stockholders effective February 26, 2021.

Because all outstanding shares of NBC common stock are held in book entry form, stockholders will not be required to take any action in order to have their stockholdings adjusted to reflect the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or custodian with procedural questions.

About Nebraska Book Holdings (“NBC”)

Founded in 1915, Nebraska Book Company is a wholly-owned subsidiary of Nebraska Book Holdings, Inc. (NBH), which also includes PrismRBS, Campus Store Design and Campus Advisory Services. Headquartered in Lincoln, Nebraska, NBH and its divisions provide course materials, retail technology, store design services, consulting and digital solutions to more than 2,000 collegiate partners across the United States, Canada and the Caribbean.

For more information about NBC visit www.nebook.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20210302005818/en/

FAQ

What is the effective date of the reverse stock split for NEEB?

The reverse stock split will be effective on March 31, 2021.

How many outstanding shares will remain after Nebraska Book Holdings' reverse stock split?

Approximately 790 shares will remain outstanding after the reverse stock split.

What will happen to fractional shares as a result of the reverse stock split for NEEB?

Fractional shares will be paid in cash at a valuation of $2,120 per post-split share.

How will the reverse stock split affect the authorized shares of Nebraska Book Holdings?

The authorized shares will be reduced to 1,900 shares of common stock and 100 shares of preferred stock.

What approval was required for the reverse stock split of Nebraska Book Holdings?

The reverse stock split was approved by a majority consent of NBC’s stockholders on February 26, 2021.