Benzinga - Bed Bath & Beyond Inc. (NASDAQ: BBBY) said Monday it is seeking shareholder approval for a reverse stock split to continue raising necessary capital to fulfill business goals, and addressed an upcoming special shareholder meeting scheduled for May 9.
What Happened: The reverse stock split up for shareholder consideration would be at a ration in the range of 1-for-10 to 1-for-20, with the ratio to be determined at the board's discretion, according to Bed Bath & Beyond.
Sue Gove, CEO of Bed Bath & Beyond, said in a statement that she recognizes the difficulties faced by the company over the last year.
"We understand the choices we have had to make to improve our liquidity have led to speculation both about our business and our stock. We are taking the necessary steps as part of our financial strategy to sustain and grow our business."
As of March 27 there were 428,098,624 BBBY shares outstanding, and only holders of these shares with settled trades as of the record date are entitled to vote at the special meeting, the company said.
The definitive proxy statement detailing the company's proposals for shareholder approval was filed Wednesday.
Regarding inquiries about "naked short selling," the company stated it doesn't have specific access to information about share lending or short selling transactions and denounces any market manipulation of its stock.
The retailer said it will continue addressing inquiries in future communications, including releasing the approximate count of directly registered shares once it can be confirmed. Bed Bath also noted that certain international brokerage houses may restrict international investors' ability to cast votes and encouraged affected investors to seek alternative brokers for future elections.
BBBY Price Action: Shares of Bed Bath are trading 2.36% lower to 30 cents Monday morning, according to data from Benzinga Pro.
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