Super League announces 1-for-40 reverse stock split to meet Nasdaq rules

SANTA MONICA - Super League Enterprise, Inc. (Nasdaq: SLE), currently trading at $0.11 with a market capitalization of $3.35 million, announced Wednesday a 1-for-40 reverse stock split of its common stock, scheduled to take effect on June 23, 2025. The company’s shares will continue trading on the Nasdaq Capital Market under the same symbol but with a new CUSIP number.

The reverse split will reduce Super League’s outstanding common shares from approximately 35.4 million to about 884,000. The company, which generated revenue of $14.69 million in the last twelve months and maintains a WEAK financial health score according to InvestingPro, is taking this action to address a deficiency notice from Nasdaq regarding the $1.00 minimum bid price requirement for continued listing.

Following the split, stockholders’ percentage ownership and voting power will remain largely unchanged, with fractional shares being rounded up to the nearest whole share. Stockholders with shares in brokerage accounts will have their positions automatically adjusted, while those holding shares in certificate form will receive instructions from Broadridge.

Super League Enterprise describes itself as a company that provides brands with advertising, content and experiences within mobile games and immersive gaming platforms.

The announcement comes after the company received a deficiency notice from Nasdaq related to listing rule 5550(a)(2), which requires companies to maintain a minimum bid price of $1.00 per share. The stock has declined over 86% in the past year, with technical indicators suggesting oversold conditions.

This article is based on a press release issued by Super League Enterprise, Inc.

In other recent news, Super League Enterprise, Inc. has been active with several financial maneuvers. The company completed a registered direct offering, raising approximately $670,000 through the sale of Common Stock and Pre-Funded Warrants. This capital will support general corporate purposes and working capital, with Aegis Capital Corp. acting as the exclusive placement agent. Additionally, Super League finalized another public stock offering, generating around $500,000 before expenses, which will also be allocated towards corporate needs and partial debt repayment.

During its 2024 annual stockholder meeting, Super League saw the election of two Class I Directors and approved several proposals, including amendments to the company’s Charter and the 2025 Omnibus Equity Incentive Plan. Stockholders also endorsed executive compensation and set the frequency of advisory votes on this matter to every three years. The appointment of Withum Smith + Brown, PC as independent auditors for 2025 was ratified, and potential reverse stock splits were authorized.

These recent developments reflect Super League’s strategic efforts to manage its financial structure and governance. The company’s actions align with Nasdaq Capital Market Listing Rule 5635, ensuring compliance with relevant securities regulations. Investors should note that these moves are part of Super League’s broader strategy to strengthen its financial position and operational capabilities.

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