NewLead Announces Reverse Split Of Shares
Bermuda registered NewLead Holdings Ltd. revealed on Tuesday [Oct 1] that a 1-for-15 reverse stock split of its common shares has been approved by the Company’s Board of Directors and by written consent of a majority of shareholders, effective upon the commencement of trading on October 17, 2013.
Due to the advance publication and notice requirements of Bermuda law, the Company was required to extend the effective date of the reverse stock split.
The reverse split will consolidate every 15 common shares into one common share, par value of $0.01 per share. As a result of the reverse stock split, the number of common shares of the Company’s common shares outstanding would currently be reduced from 700,542,019 to approximately 46,702,802 shares, subject to rounding up of all fractional shares to the nearest whole share.
In respect to the underlying common shares associated with any derivative securities, such as warrants, options and convertible notes, the conversion and exercise prices and number of common shares issuable generally will be adjusted in accordance to the 1:15 ratio. The number of authorized common shares and preferred shares of NewLead will not be affected by the reverse split.
It is anticipated that the transaction will establish a higher market price for the Company’s common shares and reduce per share transaction fees as well as certain administrative costs.
NewLead has recently appointed, effective as of October 7, 2013, a new transfer agent, Continental Stock Transfer & Trust Co, which will also act as exchange agent for the reverse stock split. After the reverse split takes effect, shareholders will receive information from Continental regarding the process for exchanging their common shares.
Continental will notify shareholders of record that hold physical certificates as of the effective time to transmit outstanding share certificates, and, unless requested, will subsequently issue new book entry statements of holding representing one post-split common share for every 15 common shares held of record as of the effective time.
Shareholders that currently hold common shares in book entry form will receive updated statements of holding reflecting the reverse split and need not take any action.
NewLead’s common shares will begin trading on a split adjusted basis when the market opens on October 17, 2013. On that date and for 20 trading days thereafter the Company’s common shares will trade under the ticker symbol “NEWLD” to provide notice of the reverse stock split. After this period, the symbol will revert to “NEWL.”
