Genco Shipping & Trading Limited (NYSE:GNK) announced that its Board of Directors has approved a 1-for-10 reverse stock split of its common stock.
On April 15, 2016, the Company had announced shareholder approval to effect a reverse stock split of the Company’s issued and outstanding shares of common stock at a ratio between 1-for-2 and 1-for-25, with such ratio to be determined in the sole discretion of the Board of Directors. The reverse split is intended to bring the Company into compliance with the $1.00 minimum average closing share price requirement for continued listing on the New York Stock Exchange (the “NYSE”). The Company expects the reverse split to become effective following the close of trading on July 7, 2016 and its common stock to begin trading on a split-adjusted basis on July 8, 2016.The Company’s common stock will continue to trade on the NYSE under the symbol “GNK.”
When the reverse stock split becomes effective, every ten shares of issued and outstanding Company common stock will be combined into one issued and outstanding share of common stock with no change in par value per share. The reverse split will reduce the number of shares of the Company’s outstanding common stock from approximately 73.5 million shares to approximately 7.4 million shares. No fractional shares will be issued as a result of the reverse stock split. Any fractional shares that would have resulted will be settled in cash.
Proportionate adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise of all of the Company’s outstanding warrants. The number of shares deliverable upon settlement or vesting of the Company’s outstanding restricted stock units will be similarly adjusted.