Danaos Corporation announced that its board of directors has determined to effect a one-for-fourteen (1-for-14) reverse stock split of the Company’s common stock, par value $0.01 per share. The Company’s stockholders approved a reverse stock split at the Company’s special meeting of stockholders held on March 5, 2019.
The reverse stock split will take effect, and the Company’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”), as of the opening of trading on or about May 2, 2019. The CUSIP number of Y1968P 121 will be assigned to the Company’s common stock when the reverse stock split becomes effective.
When the reverse stock split becomes effective, every fourteen (14) of the Company’s issued shares of common stock will be combined into one issued share of common stock, without any change to the par value per share. This will reduce the number of outstanding shares of common stock from approximately 213.4 million shares to approximately 15.2 million shares.
No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fraction of a share of common stock of the Company will receive a cash payment in lieu thereof at a price equal to that fraction of a share to which the stockholder would otherwise be entitled, multiplied by the closing price of the Company’s common stock on the NYSE on May 1, 2019.
Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the consequence of the reverse stock split reflected in their accounts on or after May 2, 2019. Such beneficial holders may contact their bank, broker, or nominee for more information.
On December 31, 2018, the Company received notice from the NYSE that it was no longer in compliance with the NYSE’s continued listing standards because the average closing share price of the Company’s common stock over a consecutive 30 trading-day period had fallen below the requirement to be at least $1.00 per share. The purpose of the reverse stock split is to increase the market price of the Company’s common stock. The Company believes that the reverse stock split will increase the market price for its common stock and cure this deficiency.
Additional information about the reverse stock split can be found in the Company’s proxy statement mailed to stockholders on or about February 1, 2019, a copy of which was furnished to the U.S. Securities and Exchange Commission (the “Commission”) on February 1, 2019 on the Company’s Report on Form 6-K and is available on the Commission’s website at www.sec.gov.