Forum Energy Technologies’ board of directors has approved a 1-for-20 reverse stock split of the company’s issued and outstanding shares of common stock, par value $0.01 per share.
This accompanies a corresponding decrease in the Forum’s authorized shares of common stock, such that, following the consummation of the reverse stock split, the number of authorized shares of common stock will go from 296,000,000 to 14,800,000.
The company ’s stockholders previously approved this move at the annual meeting in May 2020.
Forum said it anticipates that the effective time of the reverse stock split will be after market close on 9 November 9 2020, with the common stock trading on a post-split basis at the market open on 10 November 2020.
The reverse stock split will increase the market price per share of the company’s common stock, bringing the company into compliance with the listing requirements of the New York Stock Exchange .
As a result of the reverse stock split, every 20 pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders, and the number of outstanding common shares will reduce from approximately 111.5 million shares to approximately 5.6 million shares.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in Forum’s equity, except to the extent that the reverse stock split would result in a shareholder owning a fractional share.