Oxford Lane Capital Navigates Post-Consolidation Landscape

Oxford Lane Capital Corp. has entered a significant new chapter following a major corporate action that has reshaped its equity structure. The business development company recently implemented a reverse stock split and concurrently provided shareholders with crucial updates regarding its net asset value and distribution policy—developments that are now fundamentally influencing the investment vehicle’s market perception.

Share Consolidation and Trading Details

In a move that dramatically altered its share count, Oxford Lane Capital executed a 1-for-5 reverse stock split. This corporate action took effect after market close on September 5, with shares commencing trading on a split-adjusted basis when markets reopened on September 8.

The consolidation merged every five pre-split shares into a single new share. While the company’s shares continue to trade on the Nasdaq under the existing ticker symbol, the consolidation required the issuance of a new CUSIP number to reflect the changed capital structure.

Revised Distribution Framework

The company’s dividend distributions have been proportionally adjusted to account for the reduced number of outstanding shares, resulting in a significantly higher per-share payout. Management declared a September distribution of $0.45 per share.

Should investors sell immediately? Or is it worth buying Oxford Lane Capital?

Looking ahead, the board has approved distributions of $0.40 per share for each of the remaining months in the fourth quarter—October, November, and December. This adjusted distribution schedule directly corresponds to the consolidated share structure.

Key corporate action details:
* Reverse split ratio: 1-for-5
* Post-split NAV estimate: $20.02 to $20.22 per share (as of September 8)
* Adjusted September distribution: $0.45 per share
* Q4 2025 distributions: $0.40 per share for October, November, and December

Preliminary NAV Assessment

Shortly after implementing the reverse split, Oxford Lane Capital released an updated, unaudited estimate of its net asset value per share. As of September 8, management projected the NAV to be between $20.02 and $20.22.

Investors should note this assessment is preliminary in nature and has not undergone the company’s standard quarterly financial closing procedures. The official NAV figure as of September 30 may show material variance due to potential market volatility and ongoing portfolio valuation adjustments.