The Ohio Art Company - Reverse Split (Squeeze Out)

Ohio Art (OART) sent out a notice regarding a 1:2,300 reverse split (squeese out) that will cash out smaller shareholders at $10.05. The announcement says that controlling shareholders (the Killgallon family) control enough stock to push it through. 

The announcement does not have 2020 financial statements, and OART reports only annually. Given the lack of disclosure and the price where the stock was trading prior to the announcement, we consider this split potentially abusive.

One investor reaction on Twitter:

 

Ohio Art Reverse Split Notice of Meeting by Nate Tobik on Scribd

 

Disclosure: None.

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