Rave Restaurant Group (LON:RTN), Inc. (NASDAQ:RAVE), whose stock has surged 61.7% over the past six months and is currently trading near its InvestingPro Fair Value, announced the approval of a reverse-forward stock split during its annual shareholder meeting, according to a recent SEC filing. The meeting, held on Monday, saw the approval of a 1 for 1,000 reverse stock split immediately followed by a 1,000 for 1 forward stock split.
This corporate action received significant shareholder support, with 9,189,512 shares voting in favor and 460,125 shares against. There were also 102,502 abstentions. The reverse-forward stock split is aimed at reducing the number of shareholders of record, potentially enabling the company to deregister with the SEC and reduce reporting costs.
Additionally, the shareholders ratified the appointment of Whitley Penn LLP as the independent registered public accounting firm for fiscal year 2025, with 9,583,942 shares in favor.
The election of directors was also on the agenda, with Clinton J. Coleman, William C. Hammett, Jr., Robert B. Page, and Mark E. Schwarz securing their positions on the board. The vote included 2,880,358 broker non-votes.
A proposal to adjourn the Annual Meeting, if necessary, to secure additional votes for the reverse-forward stock split was also approved, with 9,215,593 shares in favor.
Rave Restaurant Group, based in The Colony, Texas, is known for its involvement in the wholesale distribution of groceries and related products.
The company, which boasts impressive gross profit margins of 71% and maintains a strong financial health score according to InvestingPro analysis, has evolved from its origins as Pizza Inn Holdings, Inc. With a market capitalization of $44 million and a healthy current ratio of 5.13, the company's current name reflects its broader focus on the restaurant industry. Access detailed financial metrics and 8 additional ProTips by subscribing to InvestingPro.
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