Canton’s Hall of Fame Village approves reverse stock split to raise its share price
Canton #Canton
CANTON, Ohio — The Hall of Fame Village’s parent company has combined individual shares to get its stock price over $1.
CONSTELLATION BRANDS, INC.
The process is called a reverse stock split, and Hall of Fame Resort & Entertainment Co., the resort’s parent company, approved a 1-for-22 split. The move was announced Dec. 23 and became effective Tuesday.
According to a news release, the primary reason for the reverse split is to comply with rules from the Nasdaq stock exchange.
A company’s stock must trade for more than $1 to remain on the stock exchange. The Nasdaq put the Hall of Fame on notice in May that its stock was trading for below $1. If it did not raise its stock price, it could have been delisted, which would make it more difficult for people to buy or sell shares in the company.
Shareholders voted to approve a reverse stock split, and then the company’s board approved the move at a September meeting, according to the Hall of Fame Village.
In a letter sent to shareholders, CEO Michael Crawford said the company has been successfully implementing its plans, despite a tough economy. The shares were trading at anywhere from 52 to 62 cents over the past month.
“While I clearly feel we are being undervalued as a company, we believe the markets are having a greater impact upon our stock price than warranted,” Crawford said.
Combining the stock essentially multiplies the current price by 22, although what it trades for after that will be up to investors.
According to the Nasdaq, the resort’s stock started trading at $10.99 a share Tuesday and continued to about $9 by the early morning.
The resort broke ground on a new waterpark in early December. Several restaurants and entertainment concepts are expected to open in early 2023.
Sean McDonnell covers business and consumer topics for cleveland.com. You can reach him at smcdonnell@cleveland.com Read previous stories at this link. Also:
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