Eagle Bulk Shipping (EGLE) Announces 1-for-20 Reverse Stock Split
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Eagle Bulk Shipping Inc. (Nasdaq: EGLE) announced that it has effected a 1-for-20 reverse stock split of its issued and outstanding shares of common stock. The reverse stock split, which was previously approved by the Company's Board of Directors and shareholders, took effect as of 5:00 p.m., Eastern Time, August 4, 2016. Upon the effectiveness of the reverse stock split, every 20 shares of issued and outstanding common stock were combined into one issued and outstanding share of common stock, with no change in par value per share.
The reverse stock split is intended to bring the Company into compliance with the $1.00 minimum average closing share price requirement for continued listing on the Nasdaq Global Select Market (the "NASDAQ"). In addition, the effectiveness of the reverse stock split is also (i) a requirement under the Company's previously announced Second Lien Loan Agreement, dated March 30, 2016, and (ii) a condition to the consummation of each of the Company's previously announced Common Stock Purchase Agreements, dated July 1, 2016 and July 10, 2016, respectively.
The Company's common stock is expected to begin trading on a split-adjusted basis on the NASDAQ at the market open on August 5, 2016. The Company's common stock will continue to trade under the symbol "EGLE" but will have a new CUSIP number (Y2187A 143).
The reverse stock split reduced the number of shares of the Company's outstanding common stock from approximately 376.1 million shares to approximately 18.8 million shares. No fractional shares were issued as a result of the reverse stock split. Any fractional shares that would have resulted will be settled in cash. Shareholders holding share certificates will receive information from Computershare, Inc., the Company's transfer agent, regarding the process for exchanging their shares of common stock. Shareholders who hold their shares in brokerage accounts or in "street name" will not be required to take any action to effect the exchange of their shares.
Additional information about the reverse stock split can be found in the Company's definitive proxy statement filed with the Securities and Exchange Commission on July 13, 2016, a copy of which is available at www.sec.gov.
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