Creative Media & Community Trust Corp. Announces 1-for-10 Reverse Stock Split and Par Value Adjustment

Dallas, TX (April 22, 2026) — Creative Media & Community Trust Corporation (“CMCT” or “the Company”, Nasdaq: CMCT), a real estate investment trust (REIT), has announced significant changes to its capital structure through the execution of a one-for-ten reverse stock split and a subsequent adjustment of the par value of its common stock. These changes were filed with the State Department of Assessments and Taxation of Maryland and became effective on April 17, 2026.

Key Highlights of the Report

• Reverse Stock Split:
  • Effective as of 11:58 p.m. Eastern Time on April 17, 2026, every ten shares of CMCT’s common stock (previously \$0.001 par value per share) were automatically combined into one issued and outstanding share of common stock, which temporarily carried a par value of \$0.01 per share.
  • No fractional shares will be issued. Instead, shareholders otherwise entitled to receive fractional shares will receive cash in lieu of such fractions, calculated based on the closing price of CMCT common stock as reported by the Nasdaq Stock Market on the date of the effective time.
• Par Value Adjustment:
  • Immediately following the reverse split, at 11:59 p.m. Eastern Time on April 17, 2026, the par value of CMCT’s issued and outstanding common stock reverted back to \$0.001 per share.
• Board Approval:
  • Both amendments were approved by at least a majority of the entire Board of Directors, as permitted under Maryland law, without a stockholder vote.
• Securities Details:
  • CMCT’s common stock continues to trade on the Nasdaq Stock Market under the symbol “CMCT”.
  • The changes do not impact the total authorized number of shares of common stock; only the number of outstanding shares and the par value per share were affected.

Implications for Shareholders and Potential Price Sensitivity

• Share Consolidation: The reverse stock split reduces the number of outstanding shares by a factor of ten, which can have several effects:
  • Share Price Impact: Theoretically, the market price per share should increase tenfold, reflecting the reduced share count, but the total market capitalization should remain unchanged (excluding market reaction).
  • Increased Liquidity and Compliance: The reverse split may help CMCT regain or maintain compliance with Nasdaq’s minimum bid price requirements, potentially avoiding delisting.
  • Fractional Shareholders: Investors holding shares not divisible by ten will receive cash for fractional shares, based on the closing price on the effective date.
• Corporate Flexibility and Reporting:
  • The amendments were made without a shareholder vote, highlighting efficient board action in response to capital structure needs.
  • No change to the authorized share count means future capital raising or dilution risk remains unchanged.
• Potential Share Price Volatility: Reverse splits can be interpreted by the market in several ways. While they often are neutral in terms of fundamental value, they can sometimes be seen as a signal of prior share price weakness or attempts to boost the share price to avoid exchange delisting, which can lead to short-term volatility.

Additional Details

• The amendments to the charter are available as exhibits to the current 8-K report (Exhibits 3.1 and 3.2), which provide the full legal text of the changes.
• The company is no longer considered an emerging growth company for SEC reporting purposes.
• As of the date of this filing, CMCT’s business address is 4700 Wilshire Blvd, Los Angeles, CA 90010, and its fiscal year ends on December 31.

Conclusion

The reverse stock split and subsequent par value adjustment are material events for CMCT shareholders. Such actions may influence the company’s share price in the short term and are important for investors to consider as they assess their holdings in CMCT. The company aims to maintain its Nasdaq listing and provide a more attractive share price, but as always, investors should monitor subsequent market and company developments closely.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the original SEC filings and consult with their financial advisors before making any investment decisions. The value of investments can go down as well as up, and past performance is not necessarily indicative of future results.

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