With the coronavirus pandemic continuing to harm oil operations globally, oil operators have continued to see their equity hit new lows. The latest victim of this is Precision Drilling (TSX: PD) (NYSE: PDS), whom this morning announced a share consolidation as a means of meeting minimum pricing requirements to remain listed on the the NYSE.
The company will be conducting a reverse split on the basis of one new share for every twenty shares previously held. Notably, this is in the mid-range of the consolidation that was approved by shareholders at the last general meeting, with the range being every five to forty old shares for one new.
After taking the effect, the consolidation will see the currently outstanding 274.5 million common shares be reduced down to just 13.7 million. No fractional shares are to be issued in connection with the consolidation.
The consolidation is expected to occur on November 12, 2020.
Precision Drilling last traded at $0.73 on the NYSE.
Information for this briefing was found via Sedar and Precision Drilling. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
