Financial news site TheStreet.com has issued a special distribution to its shareholders and also implemented a reverse stock split.
TheStreet declared a special cash distribution of $94.3 million, or $1.77 per share. In addition, the board approved a 1-for-10 reverse stock split of TheStreet’s common stock.
The bulk of the cash for the distribution is coming from the sale of its institutional business units, The Deal and BoardEx, for $87.3 million to Euromoney Institutional Investor PLC earlier this year.
“We will also continue to evaluate our cash position and operating performance with an eye towards making an additional cash distribution of up to 8 cents per share later this year and we look forward to updating the market on our progress over the coming months,” said Eric Lundberg, the chief executive officer and chief financial officer, in a statement.
The New York-based company is also changing the end of its fiscal year from Dec. 31 to March 31.
The reverse stock split will be effective on April 26. The distribution will be paid on April 22 to shareholders of record on April 15.
TheStreet shares rose 10 cents, or 4.35 percent, to $2.40 in after-market trading on Wednesday.