Creative Media & Community Trust (CMCT) completes 1-for-10 reverse stock split and par value reset
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Creative Media & Community Trust Corporation approved changes to its charter to carry out a one-for-ten reverse stock split of its common stock. Effective as of 11:58 pm Eastern Time on March 25, 2026, every ten shares of common stock outstanding were automatically combined into one share.
At the time of the reverse split, the par value of the common stock temporarily changed from $0.001 per share to $0.01 per share. One minute later, at 11:59 pm Eastern Time on March 25, 2026, a second charter amendment reverted the par value back to $0.001 per share.
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Insights
CMCT implements 1-for-10 reverse split with par value reset.
Creative Media & Community Trust Corporation is consolidating its equity by combining every ten common shares into one, effective at 11:58 pm Eastern Time on March 25, 2026. This reduces the number of shares outstanding while adjusting share price mechanically.
The company briefly increased par value from $0.001 to $0.01 per share at the reverse split effective time, then returned par value to $0.001 at 11:59 pm Eastern Time through a second amendment. These steps are administrative changes to the capital structure; actual impact on investors depends on market pricing after the split.
8-K Event Classification
2 items: 5.03, 9.01
2 items
Item 5.03
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Governance
The company amended its charter documents, bylaws, or changed its fiscal year.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Reverse split ratio: 1-for-10
Effective time of split: 11:58 pm Eastern Time
Temporary par value after split: $0.01 per share
+1 more
4 metrics
Reverse split ratio
1-for-10
Common stock consolidation effective March 25, 2026
Effective time of split
11:58 pm Eastern Time
Reverse stock split effective March 25, 2026
Temporary par value after split
$0.01 per share
Common stock par value at reverse split effective time
Reverted par value
$0.001 per share
Common stock par value at 11:59 pm March 25, 2026
Key Terms
reverse stock split, par value, Articles of Amendment, Emerging growth company
4 terms
reverse stock split financial
"to effectuate a one-for-ten reverse stock split (the “Reverse Stock Split”) of the Company’s common stock"
A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.
par value financial
"common stock, par value $0.01 per share. The second Amendment, effective as of 11:59 pm Eastern Time"
Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.
Articles of Amendment regulatory
"Creative Media & Community Trust Corporation Articles of Amendment (reverse stock split)."
Articles of amendment are official documents a corporation files with the government to record changes to its foundational details, such as its name, share structure, authorized capital, or bylaws. Think of them like updating a company’s recipe or blueprint so everyone knows the new ingredients and rules; investors use them to track structural shifts that can affect ownership, voting power, dilution risk, or a company’s strategic flexibility.
Emerging growth company regulatory
"or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
FAQ
What reverse stock split did CMCT approve in this 8-K filing?
Creative Media & Community Trust Corporation approved a one-for-ten reverse stock split of its common stock. Every ten shares outstanding at 11:58 pm Eastern Time on March 25, 2026, were automatically combined into one share, changing only the share count and price mechanics.
When did CMCT’s one-for-ten reverse stock split become effective?
The reverse stock split became effective at 11:58 pm Eastern Time on March 25, 2026. At that moment, every ten shares of CMCT common stock outstanding were combined into one share, as specified in the charter amendment filed in Maryland.
How did CMCT’s par value change in connection with the reverse stock split?
At the effective time of the reverse split, CMCT’s common stock par value changed from $0.001 to $0.01 per share. One minute later, at 11:59 pm Eastern Time on March 25, 2026, a second charter amendment reverted par value back to $0.001 per share.
Does the CMCT reverse stock split change the type of security listed on Nasdaq?
No, CMCT’s filing shows the company continues to have common stock with $0.001 par value listed on The Nasdaq Stock Market LLC under the symbol CMCT. The reverse split only adjusts share count and par value mechanics, not the security type or exchange listing.
What corporate documents did CMCT file to implement the reverse stock split?
CMCT filed two Articles of Amendment with the Maryland State Department of Assessments and Taxation. One implemented the one-for-ten reverse stock split, and the other reduced the par value of the issued and outstanding common stock back to $0.001 per share after the split.