McEwen Mining Conducts 10-to-1 Reverse Split To Meet NYSE Listing Requirements
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.
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.
The author has no securities or affiliations related to any organization mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
