Whiting Petroleum Corp (NYSE:WLL) Reports Plan For Reverse Stock Split

1722

Whiting Petroleum Corp (NYSE:WLL) reported that it intends to implement a reverse stock split of WLL at a ratio in a whole number ranging between 1-for-2 and 1-for-6, as decided by company’s Board of Directors, and a decline in the count of authorized shares. The reverse stock split will lower the count of Whiting shares of common stock due and is anticipated to surge the per share trading price, which may facilitate its trading and improve marketability.

The details

When the announced reverse split becomes effective, each count of shares between two to six shares, depending on the ratio selected by the Board, will automatically be converted into a share of common stock. Whiting doesn’t expect issuing fractional shares as an outcome of the reverse stock split; stockholders eligible to get fractional shares as an outcome of the reverse stock split will get cash payments in exchange of such shares. The reverse split will not impact the proportionate equity stakes or voting rights of stockholders, depending on the treatment of fractional shares.

Whiting Petroleum will hold a shareholders’ special meeting in the Q4 2017 to seek approval of a plan to authorize the authorized share reduction and reverse stock split. The affirmative vote is required to approve and adopt such proposal. Holders of record of WLL as of the end of business on September 18, 2017, will be eligible to vote at and to notice of the special meeting. The company has submitted a preliminary proxy statement pertaining the special meeting with the U.S. SEC.

The reverse stock split is dependent on market and other customary guidelines, including stockholder approval. Whiting Petroleum reserves the right, at its sole will, to cancel the authorized share reduction and reverse stock split at any time before submitting the applicable certificate of amendment.

In the last trading session, the stock price of Whiting gained more than 5% to close the day at $5.19.

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