Shares of mobile games platform Skillz (NYSE:SKLZ) are trading lower today after the company’s Board gave its blessing to a 1-for-20 reverse stock split of its Class A and Class B common shares.
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The split has already received the approval of the company’s investors and is expected to keep the company compliant with NYSE’s continued listing requirements. Further, Skillz shares are expected to trade on a split-adjusted basis beginning June 26.
Consequent to the move, the company’s number of Class A outstanding shares is now expected to reduce from ~354.7 million to ~17.7 million. Further, the number of its Class B outstanding shares is also expected to decline from ~68.6 million to ~3.4 million.
Earlier this month, Skillz also acquired a new office building in Las Vegas. This will be its new headquarters and the strategic location is anticipated to help Skillz attract top talent while also taping into “world-class entertainment” expertise.
Overall, the Street has a $1.04 consensus price target on Skillz alongside a Hold consensus rating. Shares of the company have tanked nearly 57% over the past year.
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