Chesapeake Energy Holders Approve 1-For-200 Reverse Stock Split
Chesapeake Energy holders approved a 1-for-200 reverse stock split. The move is designed to increase the shale-oil producer's share price and avoid a delisting.
Chesapeake Energy (CHK) - Get Report said that after a special meeting of shareholders the board approved a 1-for-200 reverse stock split in an effort to increase the shale-oil producer's share price and avoid a delisting.....MORE
Shares of the Oklahoma City company at last check were down 3.1% to 15 cents. A year ago Chesapeake Energy was trading at $2.91 a share.
In a reverse split, a company consolidates its share base to create a smaller number of proportionally more valuable shares.
Chesapeake Energy said the reverse stock split was intended to increase the trading price of its common shares to satisfy the $1-a-share minimum bid price required for listing on the New York Stock Exchange.
Chesapeake said in a regulatory filing Monday that the NYSE had notified the company in December that it was no longer compliant with the exchange's continued listing standards. That's because the average trading price of Chesapeake common shares over a 30-consecutive-trading-day-period had fallen below $1....
And today, from MarketWatch:
Chesapeake Energy's stock tumbles toward record lows, even as large reverse split boosts price by 200 times
Shares of Chesapeake Energy Corp. CHK, -37.31% have a new lease on its NYSE listing, as a large reverse stock split has taken effect, but the stock continued to tumbled toward record lows. The stock had dropped 18% on Monday to close at a record pre-split-adjusted price of 13.12 cents, before a 1-for-200 reverse split went into effect to adjust the record-low closing price to $26.24........MORE
The stock is changing hands at $16.32 -9.92 (-37.80%)
