Monaco-registered bulker owner Scorpio Bulkers Inc. has entered into agreements with unaffiliated third parties to sell three Capesize dry bulk vessels and two newbuilding Capesize dry bulk vessels under construction.
The total proceeds from the sale amount to approximately USD 167 million, Scorpio said.
Three of the Capesize vessels were constructed in Korea and delivered to Scorpio in 2015.
The remaining two vessels are currently under construction in Korea and are expected to be delivered in the first quarter of 2016.
In a separate statement, Scorpio said that its board of directors has determined to effect a one-for-twelve reverse stock split of the company’s common shares, par value USD 0.01 per share, and a reduction in the total number of authorized common shares to 56,250,000 shares.
The company’s common shares will begin trading on a split-adjusted basis on the New York Stock Exchange as of the opening of trading on December 31, 2015.
The decision comes following a warning from NYSE saying that Scorpio was no longer in compliance with the continued listing standards because the average closing share price of its common shares over a consecutive 30 trading-day period ending December 15th as they fell below USD 1.00 per share.
Scorpio resorted to the reverse stock split to increase the market price of the company’s common shares so as to cure this deficiency.