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:
I can't say it enough. Don't invest in micro-caps run by crooks. The Ohio Art Company $OART (the inventor of the Etch A Sketch) is cashing out holders of fewer than 2,300 shares at $10.05 per share.— Dave Waters (@alluvialcapital) February 23, 2021
The last trade was $15.25.