Scorpio Bulkers Inc. announced that its board of directors has determined to effect a one-for-ten reverse stock split of the Company’s common shares, par value $0.01 per share, and a reduction in the total number of authorized common shares to 31,875,000 shares.
The Company’s shareholders approved the reverse stock split and change in authorized common shares at the Company’s annual general meeting of shareholders held on April 3, 2020.
The reverse stock split will take effect, and the Company’s common shares will begin trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”) as of the opening of trading on April 7, 2020. The CUSIP number of Y7546A 130 will be assigned to the Company’s common shares when the reverse stock split becomes effective.
When the reverse stock split becomes effective, every ten of the Company’s issued common shares will be combined into one issued common share, without any change to the par value per share. This will reduce the number of outstanding common shares from approximately 72.5 million shares to approximately 7.25 million shares.
No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fraction of a common share of the Company will receive a cash payment in lieu thereof at a price equal to that fraction of a share to which the shareholder would otherwise be entitled, multiplied by the closing price of the Company’s common shares on the NYSE on April 6, 2020.
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 April 7, 2020. Such beneficial holders may contact their bank, broker, or nominee for more information.
The purpose for seeking shareholder approval to effect the reverse stock split was to increase the market price of the Company’s common shares. The Company believes that the increased market price for its common shares that is expected as a result of implementing the reverse stock split will improve the marketability and liquidity of the Company’s common shares and will encourage interest and trading in the Company’s common shares.
Source: Scorpio Bulkers