The Street shares pop after news portal unveils 1-for-10 reverse stock split and cash dividend

Shares of The Street Inc (NASDAQ:TST) popped in pre-market trade Thursday after the financial news portal unveiled a 1-for-10 reverse stock split and a special cash distribution of $1.77 per share.

In a statement, Eric Lundberg, The Street’s CEO  and CFO, said an additional cash distribution of up to $0.08 per share could be on the cards for later this year as well.

Investors applauded the news, sending The Street shares up 6% to $2.44 before the opening bell.

READ: TheStreet rallies after agreeing to sell The Deal and BoardEx to Euromoney for $87.3M

“This distribution allows us to return significant value to our stockholders at this time while also maintaining the flexibility and capital needed to effectively run the business to consumer business as we continue to explore strategic opportunities,” said Lundberg in a statement.

The special distribution, which is payable on April 22 to stockholders of record on April 15, consists of the net proceeds from the sale of the company’s business-to-business business to Euromoney and a portion of cash on hand.

In other news, the 1-for-10 reverse stock split will take effect on April 26 and reduce the number of shares of The Street’s stock to about 5.3 million from about 53.3 million.

The Street, headquartered in New York, is a provider of financial news to investors, via its website – thestreet.com.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors