Credit: Shutterstock photoDryShips Inc. DRYS , a diversified ocean going cargo vessels company, recently announced plans for a reverse stock split. This marks the fifth split in the last thirteen months. The latest reverse split follows a 52-week low for the company. Last week, the company's shares had the same fate when the equity deal with Kalani Investments (an investment vehicle in the British Virgin Islands) was announced.
DryShips' board of directors will put into effect a 1-for-4 reverse stock split of the company's common shares. This implies that every four shares of the company's common stock will be combined into one. The reverse split was approved by shareholders at the company's annual general meeting of shareholdersheld on Oct 26, 2016. The reverse stock split will bring down the number of outstanding shares at DryShips from approximately 152 million to 40 million.
The company expects the reverse stock split to take effect from Apr 11, 2017. From that date, DryShips' shares will begin trading on the Nasdaq Capital Market (on a split-adjusted basis). The trading symbol will remain the same. Following the split, the company's new CUSIP number for the common stock will be Y2109Q143.
Meanwhile, under the reverse split, fractional shares will not be issued. Those who have shares in the form of certificate are likely to receive instructions from the company's exchange agent, American Stock Transfer & Trust Company, LLC, related to exchanging their stock certificates for a new one representing the reverse stock split sharesautomotive railcar demand.
Price Performance
Shares of DryShips lost over 35% in the last one month, significantly underperforming the Zacks Transportation-Shipping industry's gain of 0.13%.
Eagle Bulk Shipping Inc. EGLE , Paragon Shipping Inc. PRGNF and Globus Maritime Limited GLBS also recently announced a reverse stock split to boost stock price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
