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NewLead Holdings Reports Reverse Stock Split [Manufacturing Close - Up](Manufacturing Close - Up Via Acquire Media NewsEdge) NewLead Holdings reported that a 1-for-50 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 NewLead's shareholders, in order for the Company to achieve compliance with the minimum bid price requirement of $1.00 per share for continued listing on The NASDAQ Global Select Market. In its release on July 14, the Company said the reverse split will be effective upon the commencement of trading July 15. As previously reported, NewLead timely requested a hearing before the NASDAQ Listing Qualifications Panel to present a plan to regain compliance and address the NASDAQ Listing Qualifications Staff concerns. The hearing has been scheduled for July 24, and a decision is expected within 30 days following the hearing. The reverse split will consolidate every fifty common shares into one common share, par value of $0.50 per share. As a result of the reverse stock split, the number of common shares outstanding will be reduced from 325 million outstanding as of July 14, to approximately 6.5 million 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 will be adjusted in accordance with the 1:50 ratio. The number of authorized common shares and preferred shares of NewLead will be 100,000,000 and 500,000,000, par value of $0.01, respectively. NewLead's transfer agent, VStock Transfer, will also act as exchange agent for the reverse stock split. After the reverse split takes effect, shareholders will receive information from VStock regarding the process for exchanging their common shares. VStock 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 50 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. ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |