Today, Star Bulk Carriers announced that its board of directors has elected to implement a 1-for-15 reverse stock split of the company's common shares. The reverse stock split has already been approved by shareholders, who also granted the board authority to decide the exact split ratio.
The reverse stock split will take effect as of the opening of trading on Monday, Oct. 15, at which time the company's common stock will also begin trading on a split-adjusted basis on the NASDAQ Global Select Market. Starting on that date, Star Bulk's shares will trade for 20 trading days under the symbol "SBLKD," in order to indicate that a reverse stock split has occurred. The company's symbol will then revert back to its original symbol. When the reverse stock split goes into effect, a new CUSIP number will be assigned to Star Bulk's common shares.
When the reverse stock split takes effect, every 15 shares of Star Bulk's issued and outstanding common stock will be automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the total number of authorized shares. The number of outstanding common shares will thereby be reduced from around 81.0 million shares to around 5.4 million shares.
There will be no fractional shares issued in connection with the reverse stock split of the issued and outstanding common stock. Any shareholders who would otherwise hold a fractional share of Star Bulk's common stock will be given a cash payment in lieu of that, at a price that is equal to the fraction the shareholder would otherwise be entitled to receive - multiplied by the closing price of the common stock on the NASDAQ Global Market on Oct. 12.
Any shareholders who have shares held in book-entry form or through a bank, broker, or other nominee do not need to take any action; they will see the impact of the reverse stock split reflected in their accounts on or after Oct. 15. Such beneficial shareholders may receive further information from their bank, broker or nominee.
Shareholders who have shares held in certificate form will receive instructions from American Stock Transfer & Trust Company LLC - Star Bulk's exchange agent - for exchanging their stock certificates for a new certificate that will represent the shares of common stock resulting from the reverse split.
Additional information about the reverse stock split is available in Star Bulk's proxy statement, which was furnished to the Securities and Exchange Commission on July 25, 2012. A copy of the proxy statement is available at www.sec.gov and on Star Bulk's Web site, www.starbulk.com.
Star Bulk is a worldwide shipping company that provides global seaborne transportation solutions in the dry bulk sector. The company's vessels transport major bulks that include iron ore, coal, and grain, and minor bulks like bauxite, fertilizers, and steel products. The company was incorporated on the Marshall Islands in December of 2006 and maintains executive offices in Athens, Greece. Star Bulk's fleet currently consists of 14 dry bulk carriers, which includes six Capesize vessels and eight Supramax vessels with a combined cargo carrying capacity of 1,475,005 deadweight tons and an average age of around 10.6 years.
For more information, visit www.starbulk.com
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