MarketWise approves reverse stock split and share reduction

MarketWise, Inc. (NASDAQ:MKTW), a prepackaged software services company currently valued at $169 million, announced the results of a Special Meeting of Stockholders that took place on Thursday. Despite trading at an attractive P/E ratio of 2.8, the company’s stock has declined over 64% in the past year, prompting management to seek approval for two key proposals that will alter the company’s capital structure. According to InvestingPro analysis, the stock appears undervalued at current levels, with 12 additional key insights available to subscribers.

The first proposal, known as the Reverse Split Proposal, received overwhelming support from the stockholders, with 228,135,224 votes in favor, 528,808 against, and 1,957 abstentions. This proposal will allow MarketWise to implement a reverse stock split of its Common Stock at a ratio of 1-for-20. The Board of Directors will decide the specific timing of the reverse stock split and retains the authority to abandon the plan if deemed necessary.

In addition to the reverse stock split, stockholders approved the Authorized Shares Proposal, aimed at decreasing the number of authorized shares of all classes of stock from 1,350,000,000 to 162,500,000, including a reduction of Class A Common Stock from 950,000,000 to 47,500,000 and Class B Common Stock from 300,000,000 to 15,000,000. This proposal garnered 228,488,897 votes for, 158,990 against, and 18,102 abstained.

The third proposal on the agenda, the Adjournment Proposal, was intended to allow the meeting to be adjourned if there were insufficient votes for the first two proposals. However, since both the Reverse Split Proposal and the Authorized Shares Proposal passed, adjournment was unnecessary. The Adjournment Proposal still received a majority of votes in favor, with 227,690,758 for, 908,884 against, and 66,347 abstentions.

These changes come as MarketWise continues to adapt its business strategy and capital structure in a dynamic market environment. While the company maintains profitability with an impressive 87% gross margin, recent market volatility has impacted its performance. The Special Meeting had a quorum with 228,665,989 shares of Common Stock present in person or by proxy, representing a majority of the issued and outstanding capital stock entitled to vote. For deeper insights into MarketWise’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

The information provided is based on a press release statement and reflects the latest strategic decisions by MarketWise’s Board of Directors and its stockholders. These developments are crucial for investors and market analysts tracking the company’s performance and future direction, particularly given the company’s recent strong three-month return trend and expectations for net income growth this year. Discover more undervalued opportunities and access exclusive financial metrics through InvestingPro’s comprehensive research platform.

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