Faced with shares that have plunged to 15 cents as of Wednesday morning, Oklahoma City’s Chesapeake Energy has proposed a reverse stock split to its shareholders.
In a filing this week with the Securities and Exchange Commission, the company said it plans to ask shareholders for approval at an April 13 meeting. The company wants a reverse stock split ranging from one share for 50 to one share for 200.
“At the Special Meeting, we will ask you to consider and vote: (1) to approve an amendment to our Restated Certificate of Incorporation to effect, at the option of the Board of Directors, a reverse stock split ratio ranging from one-for-fifth (1:50) to one-for-two hundred (1:200)”, stated the notice with the SEC.
The company’s board of directors will meet the same day and take immediate action if the reverse split is approved.
The special meeting will be at 10 a.m. on April 13 at Chesapeake headquarters, 6100 North Western Avenue in Oklahoma City.
“We believe that being able to effect a reverse stock split is in the best interest of Chesapeake and our shareholders and would allow us to increase the price per share of our common stock to a price that satisfies the continued listing requirements of the NYSE,” stated the SEC filing.
The company was notified in December 2019 that its shares were no longer in compliance with the New York Stock Exchange continued listing standards because the average trading price had fallen below $1 a share.
Source: SEC
