Stockholders in Tulsa-based Laredo Petroleum voted Thursday to approve a reverse stock split of the company’s common stock at a radio ranging from 1-for-5 to 1-for-20 of shares. It’s seen as a move that will reduce shares in the company in an attempt to regain compliance on the New Stock Exchange.
The approval came at the firm’s annual meeting and authorized the split at the discretion of the Board of Directors. It also included a corresponding reduction in the number of authorized shares of Laredo’s common stock.
Following the Company’s Annual Meeting, the Board of Directors approved a 1-for-20 reverse stock split ratio. The reverse stock split is expected to become effective on or about June 1, 2020. If completed, the Company’s stockholders will receive one new share of Laredo common stock for every 20 shares of Laredo common stock held prior to the effective date.
Stockholders will receive cash in lieu of any fractional shares. If completed, the Company’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at
the market open the day following the effective date.
The reverse stock split is intended to increase the market price of the Company’s common stock in order to regain compliance with the NYSE’s continued listing standards. Once effective, the number of authorized shares of the Company’s common stock will decrease from 450,000,000 to 22,500,000.
Source: Laredo Petroleum
