Offshore drilling company Ocean Rig on Wednesday announced a reverse stock split of 1-for-9200 common shares. This means that shareholders will own one Ocean Rig share for every 9200 shares they currently own.
Ocean Rig said the the reverse stock split will take effect as of 5:00 P.M., New York City time, on September 21, 2017, and the company’s common stock will begin trading on a split-adjusted basis on Nasdaq as of the opening of trading on September 22, 2017 under the existing trading symbol “ORIG”.
As of September 20, the company had 82,586,851 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 8,976 shares.
According to Ocean Rig, no fractional shares will be issued in connection with the reverse split of the issued common stock. This means that shareholders who own less than 9200 shares would be getting less than one full share in the reverse split.
Instead, Ocean Rig said, shareholders of record who would otherwise hold a fractional share of the company’s common stock will receive a cash payment 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 stock on Nasdaq on September 21, 2017.
“Shareholders that hold shares through a bank, broker, or nominee shall receive cash in lieu of fractional shares, if any, determined in accordance with the policies of such bank, broker, or nominee. Such shareholders may contact their bank, broker or nominee for more information,” Ocean Rig said.
To remind, at a shareholders meeting back in April 2017, the company’s shareholders approved the reverse stock split and granted the Board, the authority to determine the exact split ratio and proceed with the reverse stock split, should the board so decided.
Explaining the rationale for the need of the reverse split, Ocean Rig in April said the purpose of a reverse split would be to increase the market price of each common share to help achieve it compliance with the minimum bid price of $1.00 per share listing that is a requirement to maintain the listing on the Ocean Rig’s Common Shares on the NASDAQ Global Select.
In a separate announcement on Wednesday, the struggling offshore drilling company said it would hold an extraordinary general meeting of shareholders at the company’s offices in Cayman Islands on Friday, November 3, 2017 at 9:00 am, local time.
The meeting will be held in connection with the previously announced restructuring of the company.
— Juraj Ulicny (@UlicnyJuraj) September 19, 2017
$ORIG 1-for-9200. OMG Seriously?
— DayTraderWayne (@DayTraderWayne) September 19, 2017
$ORIG LOLOLOL biggest reverse split EVER! 1 for 9200 on Sep 22nd
— Shane Blackmon (@shaneblackmon) September 19, 2017
Offshore Energy Today Staff