Globus Maritime Mulls 1-for-4 Reverse Stock Split
Globus Maritime Limited, a dry bulk shipping company, announced that its Board of Directors has determined to effect a 1-for-4 reverse stock split of the Company's common shares.
At the Company's annual general meeting of shareholders on September 8, 2016, the Company's shareholders approved the reverse stock split and granted the Board the authority to determine the exact reverse split ratio and proceed with the reverse stock split.
The reverse stock split will take effect, and the Company's common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market, as of the opening of trading on October 20, 2016 under the existing trading symbol "GLBS." The new CUSIP number for the common stock following the reverse stock split is Y27265308.
When the reverse stock split becomes effective, every four shares of the Company's issued and outstanding common stock will be automatically combined into one issued and outstanding share of common stock, with no adjustment in par value or the number of authorized shares.
This will reduce the number of outstanding common shares from 10,510,741 to approximately 2,627,685 shares (subject to further adjustment based on fractional shares).
No fractional shares will be issued in connection with the reverse split of the issued and outstanding common stock.
Shareholders who would otherwise hold a fractional share of the Company's common stock will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company's common stock on the Nasdaq Capital Market on October 19, 2016;
Shareholders with shares held in book entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after October 20, 2016. Such beneficial holders may contact their bank, broker or nominee for more information.
Shareholders with shares held in certificated form, if any, will receive explicit instructions from the Company's transfer agent, Computershare LLC, for exchanging their stock certificates for new shares of common stock resulting from the reverse split.
