Rent the Runway Announces 1-for-20 Reverse Stock Split

NEW YORK, March 26, 2024 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway” or the “RTR”) (NASDAQ: RENT) today announced that it will proceed with a 1-for-20 reverse stock split (“Reverse Stock Split”) of its outstanding shares of Class A Common Stock and Class B Common Stock (collectively, the “Common Stock”) following approval by its Board of Directors. This ratio is within the ratio range approved by stockholders at a special meeting of RTR shareholders held on March 21, 2024.

The Reverse Stock Split is expected to become effective at 5 p.m., Eastern Time, on April 2, 2024. RTR expects the Company’s Class A Common Stock will begin trading on a post-split basis at the market open on April 3, 2024 under the symbol “RENT” with the new CUSIP number 76010Y 202. The primary goal of the Reverse Stock Split is to increase the per share market price of the Common Stock to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.

When the Reverse Stock Split is effective, every 20 shares of Rent the Runway Common Stock issued and outstanding will be combined automatically into 1 share of Common Stock. The Reverse Stock Split will apply equally to all outstanding shares of the Class A Common Stock and Class B Common Stock, and each stockholder will hold the same percentage of Class A Common Stock and Class B Common Stock outstanding immediately following the Reverse Stock Split, except for adjustments that may result from the treatment of fractional shares. No fractional shares will be issued in connection with the Reverse Stock Split. Holders of Common Stock will receive a cash payment (without interest) in lieu of any fractional shares. Additionally, all equity awards and warrants outstanding immediately prior to the Reverse Stock Split will be proportionately adjusted.

Equiniti Trust Company, LLC (“Equiniti”), formerly American Stock Transfer & Trust Company, is acting as the exchange agent and transfer agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. The Company does not have any outstanding certificated shares. Stockholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split and will receive payment for any fractional shares in accordance with their respective bank’s, broker’s, or nominee’s particular processes.