McEwen Mining (TSX: MUX) will begin trading on a post-consolidation basis at the open of markets this morning. The split, which went into effect at the close of market yesterday, was conducted as a means of regaining compliance with New York Stock Exchange listing requirements.
The consolidation, or reverse split as the company refers to it, was conducted on a 1 for 10 basis. The result is that the firms 474 million outstanding common shares will be reduced to just 47.4 million shares. The figure represents the high end of the range approved by shareholders for a reverse split transaction at the firms annual general meeting earlier this month.
No fractional shares are to be issued in connection with the consolidation, with shareholders to receive cash in lieu of any fractional shares that would issued.
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At the same time, the company has also reduced its authorized capital from 675 million to 200 million shares, under a separate resolution agreed to by shareholders.
The split follows the company in May indicating it was reviewing “other means of remaining on the NYSE,” while attempting to avoid conducting a reverse split. It was also reportedly “exploring transitioning to an alternate exchange or quotation system in the United States.”
McEwen Mining last traded at $0.47 on the TSX, prior to the reverse split taking effect.
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