The Beachbody Company, Inc. announced that the company’s board of directors had approved a reverse stock split of all of its common stock at a ratio of one post-split share for every fifty pre-split shares, effective November 21, 2023.
The subscription health and wellness company’s Class A common stock is expected to begin trading on a split-adjusted basis on the New York Stock Exchange when the stock markets open on November 22, 2023, under the existing trading symbol “BODY.”
Mark Goldston, executive chairman of Beachbody, stated, “We are confident that our recently developed turnaround plan will help drive profitability, free cash flow and help to increase our cash on the balance sheet. We have dramatically lowered the breakeven of the company through additional, newly identified reductions in both fixed costs and capital expenditures as part of the ongoing program that began in 2021. As a result of those efforts, we expect to bring the total realized cost savings under the program to a cumulative $165 million by December 31, 2023. In addition to the major cost savings program we have implemented, we are aggressively developing new programs to unlock incremental revenue opportunities. While the execution of our robust turnaround plan will put us on the right path to regain compliance with the NYSE’s minimum closing price requirements and drive long-term shareholder value, we believe that instituting a reverse stock split is the most appropriate action at this time to address the uncertainty regarding our listing.”
The reverse stock split reduced the number of issued and outstanding shares of the company’s Class A common stock from 177.81 million to 3.56 million and the number of issued and outstanding shares of the Company’s Class X common stock from 136.45 million to 2.73 million.
