FORT WORTH, Texas, Aug. 27, 2025 (GLOBE NEWSWIRE) -- SEGG Media Corporation (NASDAQ: SEGG, LTRYW) ("SEGG Media" or the "Company"), a leading sports, entertainment and gaming conglomerate that owns Sports.com, Concerts.com, and Lottery.com, today announced that its Board of Directors has approved a 1-for-10 reverse stock split of its issued and outstanding common stock. The reverse split is expected to take effect at the opening of trading on August 29, 2025, subject to final coordination with NASDAQ, FINRA, and the Company's transfer agent. The Company has obtained a new CUSIP number in connection with this action.
This reverse stock split represents a deliberate structural step in SEGG Media's post-turnaround evolution, aimed at creating a stronger foundation for sustained growth, institutional engagement, and value creation for shareholders. The Company's shareholders overwhelmingly approved a proposal authorizing the Board to enact a reverse stock split at the last annual meeting held on February 20, 2025.
The reverse stock split is intended to advance three strategic growth objectives:
- Enhancing Institutional and Algorithmic Access: By targeting a higher sustained share price, SEGG Media aims to attract a broader base of institutional investors, benefit from trading algorithms that favor higher-priced securities, and access favorable financing opportunities to fuel expansion.
- Strengthening Market Structure: A higher share price range supports engagement with top-tier market makers, creating more consistent liquidity, tighter spreads, and steadier trading volumes that benefit all investors.
- Mitigating Market Manipulation: The reverse stock split and CUSIP change reinforce the Company's ongoing measures to limit short-selling and naked short activity. The Company previously announced it had retained Paul Hastings LLP to lead an investigation into stock manipulation. The reverse stock split is intended to further distance the Company's securities from a strike price often preyed upon by bad actors and short-selling day traders.
Combined with recent leadership, brand, and asset enhancements, this structural shift positions SEGG Media for disciplined, long-term value creation.
Unlike companies compelled to reverse split to maintain their listing, SEGG Media's decision is proactive, reflecting the Company's strategic approach following a successful turnaround. The Company anticipates strong support from United Capital Investments London Limited and Generating Alpha Ltd, which have collectively committed $450 million to the Company's growth, and expects the decision to appeal to new investors seeking exposure to a robust, scaled digital media platform.
Accelerating Growth and Acquisitions
The reverse stock split also strengthens SEGG Media's capacity to execute on strategic acquisitions, including Veloce Media Group and Nook Holdings, and to accelerate operational expansion and revenue growth across the entertainment and gaming sectors, both domestically and internationally.
"From day one, our focus has been to rebuild this Company into a leading, scalable platform for long-term success," said Matthew McGahan, Chairman and CEO of SEGG Media. "This reverse stock split is a deliberate, growth-focused move designed to attract institutional investors, strengthen market engagement, and accelerate our acquisition and revenue strategies. With the right team, brands, and assets, and now the right structural foundation, SEGG Media is positioned to execute at the highest level and deliver meaningful value for our shareholders."
About SEGG Media Corporation
SEGG Media (Nasdaq: SEGG, LTRYW) is a global sports, entertainment, and gaming group operating a portfolio of digital assets, including Sports.com, Concerts.com, and Lottery.com. Focused on immersive fan engagement, ethical gaming, and AI-driven live experiences, SEGG Media is redefining how global audiences interact with the content they love.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company's strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "initiatives," "continue," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to: the Company's ability to secure additional capital resources; the Company's ability to continue as a going concern; the Company's ability to complete acquisitions; the Company's ability to remain in compliance with Nasdaq Listing Rules; and those additional risks and uncertainties discussed under the heading "Risk Factors" in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC's website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
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