SEGG Media Announces 1-For-10 Reverse Stock Split, Effective August 29; To Support Growth, Institutional Investment And Acquisition Strategy
SEGG Media Corporation (NASDAQ:SEGG, LTRYW))) ("SEGG Media" or the "Company"), a leading sports, entertainment and gaming conglomerate that owns Sports.com, Concerts.com, and Lottery.com, today announced that its Board of Directors has approved a 1-for-10 reverse stock split of its issued and outstanding common stock. The reverse split is expected to take effect at the opening of trading on August 29, 2025, subject to final coordination with NASDAQ, FINRA, and the Company's transfer agent. The Company has obtained a new CUSIP number in connection with this action.
This reverse stock split represents a deliberate structural step in SEGG Media's post-turnaround evolution, aimed at creating a stronger foundation for sustained growth, institutional engagement, and value creation for shareholders. The Company's shareholders overwhelmingly approved a proposal authorizing the Board to enact a reverse stock split at the last annual meeting held on February 20, 2025.
The reverse stock split is intended to advance three strategic growth objectives:
- Enhancing Institutional and Algorithmic Access: By targeting a higher sustained share price, SEGG Media aims to attract a broader base of institutional investors, benefit from trading algorithms that favor higher-priced securities, and access favorable financing opportunities to fuel expansion.
- Strengthening Market Structure: A higher share price range supports engagement with top-tier market makers, creating more consistent liquidity, tighter spreads, and steadier trading volumes that benefit all investors.
- Mitigating Market Manipulation: The reverse stock split and CUSIP change reinforce the Company's ongoing measures to limit short-selling and naked short activity. The Company previously announced it had retained Paul Hastings LLP to lead an investigation into stock manipulation. The reverse stock split is intended to further distance the Company's securities from a strike price often preyed upon by bad actors and short-selling day traders.
Combined with recent leadership, brand, and asset enhancements, this structural shift positions SEGG Media for disciplined, long-term value creation.
Unlike companies compelled to reverse split to maintain their listing, SEGG Media's decision is proactive, reflecting the Company's strategic approach following a successful turnaround. The Company anticipates strong support from United Capital Investments London Limited and Generating Alpha Ltd, which have collectively committed $450 million to the Company's growth, and expects the decision to appeal to new investors seeking exposure to a robust, scaled digital media platform.
Accelerating Growth and Acquisitions
The reverse stock split also strengthens SEGG Media's capacity to execute on strategic acquisitions, including Veloce Media Group and Nook Holdings, and to accelerate operational expansion and revenue growth across the entertainment and gaming sectors, both domestically and internationally.