NextPlay Announces Reverse Stock Split Effective January 6, 2023, in Order to Meet Nasdaq Minimum Price Continued Listing Requirement

NextPlay Technologies, Inc. (Nasdaq: NXTP), a digital native ecosystem for finance, digital advertisers, and video gamers announced that its Board of Directors has declared a 1-for-20 reverse stock split of the company’s common stock. The reverse stock split will become effective on January 6, 2023 (the “Effective Date”) at 12:01 AM Pacific Time. The company’s common stock is expected to begin trading on a split-adjusted basis when the markets open on January 6, 2023, under the current Nasdaq trading symbol “NXTP”.

The reverse stock split is primarily intended to bring the company into compliance with the minimum bid price requirements for maintaining NextPlay’s listing on the Nasdaq Capital Market. The new CUSIP number following the reverse split will be 65344G 210.

As a result of the reverse stock split, every 20 shares of the company’s common stock issued and outstanding will be automatically reclassified into one new share of common stock. Proportionate adjustments will be made to the conversion and exercise prices and the number of shares underlying the Company’s outstanding warrants, equity awards and options, and the number of shares reserved under the Company’s equity incentive plan. The reverse stock split will not affect par value of the common stock and does not affect the Company’s authorized preferred stock, of which no shares are outstanding.

Prior to the reverse stock split, there were 118,445,979 shares issued and outstanding and will adjust to approximately 5,922,299 shares of common stock issued and outstanding following the reverse stock split. Any fractional shares of common stock resulting from the reverse stock split will be rounded up to the nearest whole share and no stockholders will receive cash in lieu of fractional shares. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the company, except to the extent that the reverse stock split would result in a stockholder owning slightly more common shares as a result of the rounding up to the next whole share for each fractional share.

The company’s transfer agent, Colonial Stock Transfer (“CST”), is acting as the exchange agent for the reverse stock split. CST will provide instructions to stockholders of record regarding the exchange of stock certificates. Stockholders who hold their shares in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares.