MoneyLion's 1-for-30 Reverse Stock Split: What Investors Need to Know

MoneyLion (NYSE: ML) is executing a significant capital restructuring—a 1-for-30 reverse stock split of its Class A Common Stock that takes effect on April 24, 2023, with trading resuming on a split-adjusted basis on April 25, 2023. Here’s what this means for shareholders.

The Core Details of the Reverse Stock Split

The reverse stock split was greenlit by MoneyLion’s Board of Directors and approved by stockholders at a virtual Special Meeting on April 19, 2023. Under the new structure, every 30 existing shares will automatically convert into 1 new share. This consolidation reduces the total authorized Class A Common Stock from 2 billion shares down to approximately 66.67 million shares, while the par value remains fixed at $0.0001 per share.

The stock will continue trading on the New York Stock Exchange under the symbol “ML,” though it will receive a new CUSIP number (60938K 304). MoneyLion’s publicly traded warrants retain their symbol “ML WS” and CUSIP unchanged.

Impact on Your Holdings and Equity Awards

If you own shares directly through a transfer agent, no action is required—your position automatically adjusts. For those holding shares through brokers or banks, the adjustment happens seamlessly within your brokerage account.

The reverse stock split triggers proportionate adjustments across the board: warrants will now represent the right to purchase 1/30th of a share at an adjusted exercise price of $345.00; Series A Convertible Preferred Stock conversion factors are similarly recalibrated; and all outstanding equity awards and incentive plan shares are proportionally modified.

Handling Fractional Shares

Stockholders who would receive fractional shares receive cash compensation instead. The payment equals the fractional share amount multiplied by the closing price of Class A Common Stock on April 24, 2023—the effective date of the reverse stock split.

Why This Matters

Reverse stock splits are typically employed when a company’s share price has declined significantly, and MoneyLion appears to be addressing this concern through capital restructuring. The consolidation reduces share count while mathematically increasing the per-share price, potentially improving the company’s positioning in the market and potentially meeting exchange listing standards.

Continental Stock Transfer & Trust Company is managing the mechanics of the split, ensuring a smooth transition for all shareholders.

For full details, review MoneyLion’s definitive proxy statement filed with the SEC on March 31, 2023, available at sec.gov and investors.moneylion.com.