Arch Coal is to implement a one-for-ten reverse stock split of its common stock in a bid to remain listed on the New York Stock Exchange (NYSE), following approval from its stockholders at the company’s annual meeting of stockholders back in April.
Under the split, which is expected to take place after market close on 27 July, every ten shares of Arch’s common stock and treasury shares will be converted into one share of common stock.
“The reverse stock split is intended to increase the market price per share of Arch common stock to allow Arch to maintain the listing of its common stock on the NYSE,” the company said in a statement.
As a result the number of shares of Arch’s common stock will be reduced to about 21.3 million from about 213 million. The split will not modify any rights or preferences of Arch’s common stock, the company continued.
Arch Coal’s shares were trading at 22 cents as the market closed on 20 July, giving the company a market capitalisation of just US$56.36 million. In 2008, at the height of the commodities boom, the shares were worth US$73.43.
Arch Coal’s rival, Alpha Natural Resources, recently had trading in its common stock suspended by the NYSE and proceedings initiated to delist the company after the price of the company’s shares dropped to just 24 cents.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/21072015/arch-coal-takes-measures-to-boost-share-price-2594/