The Situation

Hall of Fame Resort & Entertainment Co (NASDAQ: HOFVW) shares – a sports, entertainment, and media enterprise – spiked on Wednesday after the company completed its reverse stock split to raise its price. As of 1:00 PM ET, Hall of Fame shares spiked by 50.33%.

The Explanation

Hall of Fame Resort & Entertainment Co, the parent company of Hall of Fame Village (NASDAQ: HOFV), approved a reverse stock split to raise the latter's share price to comply with the new NASDAQ stock exchange rules.

The company just completed its 1-for-22 reverse stock split for HOFV, which was initially announced on Dec 23. The company risks being delisted if it does not trade for at least $1 on the stock exchange. After the announcement of the completion of HOFV's reverse stock split, shares of HOFVW started to rise.

See the $HOFVW chart performance here.

The Effect

Hall of Fame Resort & Entertainment Co shares reported gains after the completion of the reverse stock split for HOFV. The investors' reaction happened as the success of the reverse stock split for HOFV. Since investors can't know for sure what the company plans to do next, it is more important to focus on Hall of Fame's business.

See full $HOFVW flow at: https://unusualwhales.com/stock/HOFVW/flow-overview