Xcel Brands Announces Reverse Stock Split
Xcel Brands (NASDAQ: XELB) has announced a 1-for-10 reverse stock split effective March 25, 2025. The company's common stock will continue trading on Nasdaq under 'XELB' with a new CUSIP number 98400M200.
For every ten shares of issued and outstanding common stock, stockholders will receive one share. While ownership percentages remain unchanged, no fractional shares will be issued. Instead, affected stockholders will receive cash payments based on the closing price before the amendment date multiplied by the reverse split ratio.
The split, approved by stockholders on March 12, 2025, aims to bring the company into compliance with Nasdaq's $1.00 minimum bid price requirement. The company's transfer agent, Continental Stock Transfer & Trust Company, will manage the exchange process, with automatic adjustments for shares held through brokers.
Xcel Brands (NASDAQ: XELB) ha annunciato uno split azionario inverso 1-per-10 che entrerà in vigore il 25 marzo 2025. Le azioni ordinarie dell'azienda continueranno a essere scambiate su Nasdaq con il simbolo 'XELB' e un nuovo numero CUSIP 98400M200.
Per ogni dieci azioni emesse e in circolazione, gli azionisti riceveranno un'azione. Sebbene le percentuali di proprietà rimangano invariate, non saranno emesse azioni frazionarie. Invece, gli azionisti interessati riceveranno pagamenti in contante basati sul prezzo di chiusura prima della data di modifica moltiplicato per il rapporto di split inverso.
Lo split, approvato dagli azionisti il 12 marzo 2025, mira a portare l'azienda in conformità con il requisito di prezzo minimo di offerta di $1.00 di Nasdaq. L'agente di trasferimento dell'azienda, Continental Stock Transfer & Trust Company, gestirà il processo di scambio, con aggiustamenti automatici per le azioni detenute tramite broker.
Xcel Brands (NASDAQ: XELB) ha anunciado un split de acciones inverso 1 por 10 que entrará en vigor el 25 de marzo de 2025. Las acciones ordinarias de la compañía continuarán cotizando en Nasdaq bajo el símbolo 'XELB' con un nuevo número CUSIP 98400M200.
Por cada diez acciones emitidas y en circulación, los accionistas recibirán una acción. Aunque los porcentajes de propiedad permanecen sin cambios, no se emitirán acciones fraccionarias. En su lugar, los accionistas afectados recibirán pagos en efectivo basados en el precio de cierre antes de la fecha de enmienda multiplicado por el ratio del split inverso.
El split, aprobado por los accionistas el 12 de marzo de 2025, tiene como objetivo llevar a la compañía a cumplir con el requisito de precio mínimo de oferta de $1.00 de Nasdaq. El agente de transferencia de la compañía, Continental Stock Transfer & Trust Company, gestionará el proceso de intercambio, con ajustes automáticos para las acciones mantenidas a través de corredores.
Xcel Brands (NASDAQ: XELB)는 2025년 3월 25일부터 시행되는 10대 1 비율의 역주식 분할을 발표했습니다. 회사의 보통주는 'XELB'라는 기호로 Nasdaq에서 계속 거래되며, 새로운 CUSIP 번호는 98400M200입니다.
발행된 보통주 10주당 주주에게 1주가 지급됩니다. 소유 비율은 변하지 않지만, 분할된 주식은 발행되지 않습니다. 대신, 해당 주주는 수정일 이전의 종가에 역분할 비율을 곱한 금액의 현금 지급을 받게 됩니다.
2025년 3월 12일 주주들이 승인한 이 분할은 Nasdaq의 $1.00 최소 입찰 가격 요건을 준수하기 위한 것입니다. 회사의 이전 에이전트인 Continental Stock Transfer & Trust Company가 교환 프로세스를 관리하며, 브로커를 통해 보유된 주식에 대한 자동 조정이 이루어집니다.
Xcel Brands (NASDAQ: XELB) a annoncé un rachat d'actions inversé 1 pour 10 qui entrera en vigueur le 25 mars 2025. Les actions ordinaires de la société continueront d'être échangées sur Nasdaq sous le symbole 'XELB' avec un nouveau numéro CUSIP 98400M200.
Pour chaque dix actions émises et en circulation, les actionnaires recevront une action. Bien que les pourcentages de propriété restent inchangés, aucune action fractionnaire ne sera émise. Au lieu de cela, les actionnaires concernés recevront des paiements en espèces basés sur le prix de clôture avant la date de modification multiplié par le ratio du rachat inversé.
Le rachat, approuvé par les actionnaires le 12 mars 2025, vise à amener la société à se conformer à l'exigence de prix minimum de l'offre de 1,00 $ de Nasdaq. L'agent de transfert de la société, Continental Stock Transfer & Trust Company, gérera le processus d'échange, avec des ajustements automatiques pour les actions détenues par l'intermédiaire de courtiers.
Xcel Brands (NASDAQ: XELB) hat einen 1-zu-10 Reverse-Aktien-Split angekündigt, der am 25. März 2025 in Kraft tritt. Die Stammaktien des Unternehmens werden weiterhin unter 'XELB' an der Nasdaq gehandelt, mit einer neuen CUSIP-Nummer 98400M200.
Für jede zehn ausgegebenen und im Umlauf befindlichen Stammaktien erhalten die Aktionäre eine Aktie. Während die Eigentumsanteile unverändert bleiben, werden keine Bruchaktien ausgegeben. Stattdessen erhalten betroffene Aktionäre Barzahlungen, die auf dem Schlusskurs vor dem Änderungsdatum multipliziert mit dem Verhältnis des Reverse-Splits basieren.
Der Split, der am 12. März 2025 von den Aktionären genehmigt wurde, zielt darauf ab, das Unternehmen in Übereinstimmung mit der Mindestgebotsanforderung von $1,00 von Nasdaq zu bringen. Der Übertragungsagent des Unternehmens, Continental Stock Transfer & Trust Company, wird den Austauschprozess verwalten, mit automatischen Anpassungen für Aktien, die über Broker gehalten werden.
- Strategic move to maintain Nasdaq listing compliance
- No change in stockholders' ownership percentages (excluding fractional shares)
- Automatic adjustment process through transfer agent requiring no stockholder action
- Indicates company's struggle to maintain minimum share price requirements
- Cash payments for fractional shares may force some investors to partially liquidate positions
- Potential negative market perception of reverse splits as distress signals
Insights
Xcel Brands' announced 1-for-10 reverse stock split represents a critical compliance maneuver rather than a positive corporate development. With the current share price at
Reverse splits are typically associated with companies experiencing financial distress and rarely address the fundamental issues driving the depressed valuation. While shareholders will maintain the same percentage ownership, the psychological impact on market perception is generally negative.
This move doesn't create new value - it merely repackages existing equity into fewer, higher-priced shares. The mechanical price adjustment to approximately
Investors should recognize this as primarily a technical maneuver to preserve listing status rather than a signal of operational improvement or strategic repositioning at this media and consumer products company. The very need for this action indicates persistent challenges in the company's livestream shopping and social commerce business model.
1-for-10 reverse stock split to become effective as of the opening of trading on March 25, 2025
NEW YORK, March 21, 2025 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel Brands” or the “Company”), a media and consumer products company with significant expertise in livestream shopping and social commerce, today announced that it will effect a 1-for-10 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock par value
Xcel Brands’ Common Stock will continue to trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol “XELB”. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 98400M200.
The material effects of the Reverse Stock Split are for every ten shares (the “Reverse Stock Split Number”) of Xcel Brands’ issued and outstanding Common Stock have been combined into one (1) share of Common Stock. The ownership percentage of each Xcel Brands stockholder will remain unchanged, other than as a result of fractional shares. No fractional shares of Common Stock will be issued in connection with the Reverse Stock Split. Instead, stockholders who otherwise would have been entitled to receive fractional shares were entitled to receive a cash payment (without interest and subject to applicable withholding taxes) in lieu of such fractional shares equal to the fraction of a share of common stock to which such stockholder would otherwise be entitled multiplied by (i) the closing price per share of the common stock on the Nasdaq Capital Market at the close of business on the trading day preceding the date of the Certificate of Amendment, multiplied by (ii) the Reverse Stock Split Number.
The shares of Common Stock underlying the Company’s outstanding stock options and warrants will be proportionately adjusted along with corresponding adjustments to their exercise prices.
At the special meeting of stockholders held on March 12, 2025, the stockholders of the Company approved a proposal to authorize the Company’s Board of Directors (the “Board”) to file a Certificate of Amendment to effect the Reverse Stock Split at a ratio between 1-for-2 and 1-for-10, as determined by the Chairman of the Board in his sole discretion.
The combination of, and reduction in, the number of issued shares of Common Stock as a result of the Reverse Stock Split will occur automatically on March 25, 2025, without any additional action on the part of Xcel Brands’ stockholders. The Company’s transfer agent, Continental Stock Transfer & Trust Company, is the exchange agent for the Reverse Stock Split and will correspond with stockholders of record regarding the Reverse Stock Split. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split.
Among other considerations, the Reverse Stock Split is intended to assist in bringing Xcel Brands into compliance with the
Additional information regarding the Reverse Stock Split can be found in the Company’s Definitive Proxy Statement on Schedule 14A, filed with the U.S. Securities and Exchange Commission on February 14, 2025. A link to this document is available at https://www.sec.gov and on Xcel Brands’ website at https://www.xcelbrands.com/pages/sec-filings.
For more information about Xcel Brands, visit www.xcelbrands.com. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the Tower Hill by Christie Brinkley co-branded collaboration, and holds noncontrolling interests in the Isaac Mizrahi brand and Orme Live. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of
Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “ongoing,” “could,” “estimates,” “expects,” “intends,” “may,” “appears,” “suggests,” “future,” “likely,” “goal,” “plans,” “potential,” “projects,” “predicts,” “seeks,” “should,” “would,” “guidance,” “confident” or “will” or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on form 10-K for the year ended December 31, 2021 and its other filings with the SEC, which may cause our or our industry’s actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
For further information please contact:
Seth Burroughs
Xcel Brands
sburroughs@xcelbrands.com
FAQ
When will Xcel Brands' (XELB) 1-for-10 reverse stock split take effect?
How will XELB handle fractional shares in the reverse stock split?
What happens to XELB stock options and warrants after the reverse split?
Why is Xcel Brands (XELB) implementing this reverse stock split?
