Shareholders are being sent proxies for a June 26th special meeting to complete the restructuring of Westwood One. They’re being asked to authorize more shares of stock, but then go through a reverse split of one new share for each 200 existing ones.
The increase in authorized shares to five billion from the current 300 million will facilitate the financial restructuring already agreed to under which the Gores Group has boosted its equity stake in WW1 to 74.8%, leaving former public shareholders with only 2.5%. But, that made it possible for the company to survive.
A preliminary SEC filing had set the reverse split at one for 65. That has now been changed, however, to the one for 200. That would reduce the number of authorized shares from five billion (assuming that measure passes) to 25 million.
Other measures on the special meeting agenda are essentially housekeeping items. WW1 shareholders of record on June 3rd (today) will be eligible to vote at the special meeting to be held in Culver City, CA. Most, of course, will vote by proxy.
RBR/TVBR observation: OK, a reverse split is never fun. But with the stock lately trading for six or seven cents a share, 1-for-200 only takes it to 12 or 13 bucks. Hopefully, if all works out the way it is supposed to, the stock will move up from there.
