DryShips Inc. ( NASDAQ : DRYS ), a diversified owner of ocean going cargo vessels, announced that its Board of Directors has determined to effect a 1-for-7 reverse stock split of the Company’s issued common shares.
At the Company’s annual general meeting of shareholders on May 2, 2017, the Company’s shareholders approved the reverse stock split and granted the Board, or a duly constituted committee thereof, the authority to determine the exact split ratio and proceed with the reverse stock split.
The reverse stock split will take effect, and the Company’s common shares will begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the opening of trading on July 21, 2017 under the existing trading symbol “DRYS”. The new CUSIP number for the common shares following the reverse stock split is Y2109Q705.
When the reverse stock split becomes effective, every seven shares of the Company’s issued common stock will be automatically combined into one share of common stock. As of the date of this press release, the Company had 36,296,095 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 5.2 million shares.
No fractional shares will be issued in connection with the reverse split of the issued common shares. Shareholders who would otherwise hold a fractional share of the Company’s common shares will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company’s common shares on the Nasdaq Capital Market on July 20, 2017.
Shareholders 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 impact of the reverse stock split reflected in their accounts on or after July 21, 2017. Such beneficial holders may contact their bank, broker, or nominee for more information.
Shareholders with shares held in certificate form will receive instructions from the Company’s exchange agent, American Stock Transfer & Trust Company, LLC, for exchanging their stock certificates for a new certificate representing the shares of common stock resulting from the reverse split.
Additional information about the reverse stock split can be found in the Company’s proxy statement furnished to the Securities and Exchange Commission on April 3, 2017, a copy of which is available on the Commission’s website at www.sec.gov.