Royal Assets - Bed Bath & Beyond Requests for a Reverse Stock Split

NORTH BRIDGE ROAD, Singapore - May 16, 2023 - PRLog -- CEO Sue Gove called a special shareholder meeting to vote on a proposal to split the shares in a 1-for-10 to 1-for-20 ratio, with the precise ratio set by the board.

The vote is scheduled for May 9, and only stockholders who were shareholders as of March 27 will be allowed to vote. Gove also said that if the motion does not get enough support, the special meeting might be postponed in order to gather extra proxies.

In a regulatory filing, BBBY said that the action was essential because the firm "needs to acquire equity capital to have the necessary financial resources to pay operations and service commitments." If shareholders reject the proposal, the company will "likely be forced to file for bankruptcy."

If you believe you've read it before, that's because Bed Bath & Beyond has declared bankruptcy three times this year unless it receives an emergency financial injection. The previous two occasions, in January and March, the firm announced that it would be selling shares to obtain the required funds. In the current filing, Bed Bath & Beyond said that the reverse stock split would improve the price of shares and make them more appealing to investors, allowing it to raise more money in its current stock offering.

Increased Sales

In addition to stock changes, Bed Bath & Beyond is trying to raise income through increasing sales, announcing Wednesday a vendor consignment deal that would put up to $120 million in products on its retail shelves.

Unfortunately, like with yesterday's statement, today's announcement did not assist the stock price. Bed Bath & Beyond stock fell 8% to a new all-time low.

Royal Assets Pte. Ltd. (https://royalassetsltd.com) is a family business that treats its investors like family. Honesty and transparency are core to our Investment Philosophy and key to our service offering.