Why Paysafe Stock Plunged by 10% on Friday
U.K.-based fintech Paysafe (NYSE:PSFE) had a lousy time on the U.S. exchange at the end of the week. On Friday, the company's New York Stock Exchange-listed stock took a 10% hit on some dispiriting news about the future of those shares.
Just after market close on Thursday, Paysafe announced that its board of directors has approved a reverse stock split. The company will reverse-split its common shares at a ratio of one new share for every 12 existing ones. The move will be effective almost immediately after market close this coming Monday, Dec. 12. The freshly reverse-split shares will begin trading the following day.
Prior to the board's nod, the company's latest piece of financial engineering was approved by shareholder vote at a special general meeting held on Thursday. The poll was overwhelmingly in favor of the measure, with approval of over 95%.
Source Fool.com
