Urban One Executes 10-for-1 Reverse Stock Split for Nasdaq Compliance

Urban One Implements Reverse Stock Split to Ensure Nasdaq Compliance

Urban One, Inc. announces a strategic move to execute a reverse stock split of its common stock in a 10-for-1 ratio, effective January 22, 2026. This decision, approved by the Board of Directors on January 16, aims to comply with the Nasdaq Capital Market's minimum bid price requirement of $1.00, particularly concerning its Class D Common Stock. Following stockholder approval on June 18, 2025, the reverse split intends to stabilize the company's stock price while ensuring continued listing on the Nasdaq exchange. Trading on a split-adjusted basis will commence on January 23, 2026, marking a pivotal moment in Urban One's financial strategy.

The reverse stock split will affect all classes of Urban One's common stock, including Class A, B, C, and D, thus maintaining shareholders' percentage ownership and voting power. Each ten shares of Class A and Class D Common Stock will consolidate into one share, with new CUSIP numbers assigned for both classes. Importantly, the company clarifies that no fractional shares will be issued; instead, stockholders entitled to fractions will receive cash equivalent to the closing price on the split's effective date. This approach ensures that shareholders are compensated fairly while avoiding the complications that fractional shares can introduce.

Urban One emphasizes that the reverse stock split will not impact its business operations or total stockholders’ equity. The company intends to assure stakeholders that this financial maneuver is purely a compliance-driven decision, aimed at enhancing the stock's market perception and viability, rather than a reflection of its operational performance. By executing this split, Urban One is taking proactive steps to navigate the regulatory landscape while reinforcing its commitment to its shareholders.

In addition to the reverse stock split, Urban One's leadership remains focused on its core mission of providing quality content and services to its audience. The company continues to explore opportunities within the media landscape, aiming to enhance its offerings and maintain its competitive edge. As Urban One moves forward, stakeholders can anticipate strategic initiatives that align with its long-term vision while adhering to regulatory standards.

Overall, Urban One's reverse stock split marks a significant development aimed at ensuring compliance with Nasdaq requirements, positioning the company for future growth and stability in the dynamic media sector.