Super League Announces 1-for-40 Reverse Split

Rhea-AI Summary

Super League Enterprise (Nasdaq: SLE) announced a 1-for-40 reverse stock split effective June 23, 2025, to address a Nasdaq deficiency notice regarding the $1.00 minimum bid price requirement. The reverse split will reduce outstanding shares from 35.4 million to approximately 884,000 shares. Trading will continue under symbol SLE with new CUSIP No. 86804F400. Stockholders' ownership percentages and voting power will remain largely unchanged, with fractional shares rounded up. The split affects both street name and registered stockholders, with no action required for electronic holdings while certificate holders will receive instructions from Broadridge.

Positive

• Potential to maintain Nasdaq listing by meeting minimum bid price requirement
• No change in stockholders' percentage ownership and voting power
• Automatic handling of split for most shareholders with minimal required action

Negative

• Indicates company's struggle to maintain minimum share price requirements
• Significant reduction in total shares outstanding may impact stock liquidity
• Reverse splits often carry negative market perception

SANTA MONICA, Calif., June 18, 2025 (GLOBE NEWSWIRE) -- Super League Enterprise, Inc. (Nasdaq: SLE) (the “Company”), a leader in engaging audiences through playable media, content, and experiences within mobile games and the world’s largest immersive platforms, announced today a reverse stock split of its issued and outstanding shares of common stock, par value $0.001 per share (“Common Stock”), at a ratio of 1-for-40 (the “Reverse Split”).

The Reverse Split is expected to become legally effective at 12:01 AM on June 23, 2025 (the “Legal Effective Date”), and the shares are expected to begin trading on the split-adjusted basis on the Nasdaq Capital Market (“NCM”) under the Company's trading symbol “SLE” on June 23, 2025. The shares will be assigned new CUSIP No. 86804F400.

On the Legal Effective Date, every 40 issued and outstanding shares of the Company’s Common Stock will be converted automatically into one share of the Company’s Common Stock without any change in the par value per share. Once effective, the Reverse Split will reduce the number of shares of Common Stock outstanding from approximately 35.4 million shares to approximately 884 thousand shares.

The Reverse Split is necessary to cure a deficiency notice previously received by the Company from Nasdaq relating to the $1.00 minimum bid price required for continued listing on the NCM under Nasdaq Listing Rule 5550(a)(2).

Immediately after the Reverse Split, each stockholder's percentage ownership interest in the Company and proportional voting power will remain unchanged, except for minor changes and adjustments that will result from the treatment of fractional shares. No fractional shares of the Company’s Common Stock will be issued; instead, all fractional shares will be rounded up to the nearest whole share. The rights and privileges of the holders of shares of Common Stock will be substantially unaffected by the Reverse Split.

Stockholders who hold their shares in brokerage accounts or in “street name” will have their positions automatically adjusted to reflect the Reverse Split, subject to each broker's particular processes, and will not be required to take any action in connection with the Reverse Split. Registered stockholders holding pre-split shares of the Company's Common Stock electronically in book-entry form are not required to take any action to receive post-split shares. Those stockholders holding shares of the Company's Common Stock in certificate form will receive a transmittal letter from Broadridge with instructions as soon as practicable after the Legal Effective Date.

About Super League

Super League (Nasdaq: SLE) is redefining how brands connect with consumers through the power of playable media. The Company provides global brands with ads, content, and experiences that are not only seen - they’re played, felt, and remembered - within mobile games and the world’s largest immersive gaming platforms. Powered by proprietary technology, an award-winning development studio, and a vast network of native creators, Super League is a one-of-a-kind partner for brands looking to stand out in culture, spark loyalty, and drive meaningful impact. In a world where attention is earned, Super League makes brands relevant - by making them playable. For more information, visit superleague.com.

Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. These risks and uncertainties include, without limitation, risks and uncertainties related to the future price of our Common Stock, the effect of the Reverse Split on stockholders, the effect of the Reverse Split on the Company’s stock price, and the Company’s ability to regain compliance with NCM listing standards; market conditions; the Company’s ability to maintain adequate liquidity and financing sources; various risks related to the Company’s business operations; and other risks and uncertainties, including those described within the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. There can be no assurance that the Company will be able to maintain compliance with the NCM’s continued listing standards. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Super League Investor Relations Contact:
Shannon Devine / Mark Schwalenberg
MZ North America
Main: 203-741-8811
SLE@mzgroup.us

FAQ

When will Super League's (SLE) 1-for-40 reverse stock split take effect?

The reverse stock split will become legally effective at 12:01 AM on June 23, 2025, with trading on a split-adjusted basis beginning the same day on the Nasdaq Capital Market.

Why is Super League (SLE) implementing a reverse stock split?

The reverse split is being implemented to cure a Nasdaq deficiency notice regarding the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market.

How many shares will Super League (SLE) have after the reverse split?

The reverse split will reduce Super League's outstanding shares from approximately 35.4 million to about 884 thousand shares.

Do SLE shareholders need to take any action for the reverse split?

Most shareholders don't need to take action. Those holding shares in street name will have positions automatically adjusted, while certificate holders will receive instructions from Broadridge.

Will the SLE reverse split affect shareholders' ownership percentage?

No, stockholders' percentage ownership and voting power will remain unchanged, except for minor adjustments due to fractional shares being rounded up.