ATHENS, Greece, April 22, 2019 /PRNewswire/ -- Danaos
Corporation (the "Company" or "Danaos") (NYSE: DAC) today
announced that its board of directors has determined to effect a
one-for-fourteen (1-for-14) reverse stock split of the Company's
common stock, par value $0.01 per
share. The Company's stockholders approved a reverse stock
split at the Company's special meeting of stockholders held on
March 5, 2019.
The reverse stock split will take effect, and the Company's
common stock will begin trading on a split-adjusted basis on the
New York Stock Exchange ("NYSE"), as of the opening of trading on
or about May 2, 2019. The CUSIP
number of Y1968P 121 will be assigned to the Company's common stock
when the reverse stock split becomes effective.
When the reverse stock split becomes effective, every fourteen
(14) of the Company's issued shares of common stock will be
combined into one issued share of common stock, without any change
to the par value per share. This will reduce the number of
outstanding shares of common stock from approximately 213.4 million
shares to approximately 15.2 million shares.
No fractional shares will be issued in connection with the
reverse stock split. Stockholders who would otherwise hold a
fraction of a share of common stock of the Company will receive a
cash payment in lieu thereof at a price equal to that fraction of a
share to which the stockholder would otherwise be entitled,
multiplied by the closing price of the Company's common stock on
the NYSE on May 1, 2019.
Stockholders 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 consequence of the reverse stock split reflected
in their accounts on or after May 2,
2019. Such beneficial holders may contact their bank, broker,
or nominee for more information.
On December 31, 2018, the Company
received notice from the NYSE that it was no longer in compliance
with the NYSE's continued listing standards because the average
closing share price of the Company's common stock over a
consecutive 30 trading-day period had fallen below the requirement
to be at least $1.00 per share. The
purpose of the reverse stock split is to increase the market price
of the Company's common stock. The Company believes that the
reverse stock split will increase the market price for its common
stock and cure this deficiency.
Additional information about the reverse stock split can be
found in the Company's proxy statement mailed to stockholders on or
about February 1, 2019, a copy of
which was furnished to the U.S. Securities and Exchange Commission
(the "Commission") on February 1,
2019 on the Company's Report on Form 6-K and is available on
the Commission's website at www.sec.gov.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements within the meaning of the safe harbor provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including statements with respect
to the Company's ability to regain compliance with the NYSE's
continued listing standards and remain listed on
the NYSE or other major stock exchange and other
statements that are forward looking. Forward-looking statements
reflect our current views with respect to future events and
financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The forward-looking statements in
this release are based upon various assumptions. Although Danaos
Corporation believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, Danaos
Corporation cannot assure you that it will achieve or accomplish
these expectations, beliefs or projections. Important factors that,
in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the
effects of refinancing transactions, Danaos' ability to achieve the
expected benefits of the refinancing and comply with the terms of
its new credit facilities and other agreements entered into in
connection with the refinancing, the strength of world economies
and currencies, general market conditions, including changes in
charter hire rates and vessel values, charter counterparty
performance, changes in demand that may affect attitudes of time
charterers to scheduled and unscheduled dry-docking, changes in
Danaos Corporation's operating expenses, including bunker prices,
dry-docking and insurance costs, ability to obtain financing and
comply with covenants in our financing arrangements, actions taken
by regulatory authorities, potential liability from pending or
future litigation, domestic and international political conditions,
potential disruption of shipping routes due to accidents and
political events or acts by terrorists.
Risks and uncertainties are further described in reports filed
by Danaos Corporation with the U.S. Securities and Exchange
Commission.
About Danaos Corporation
Danaos Corporation's fleet of 59 containerships aggregating
352,600 TEUs, including four vessels owned by Gemini Shipholdings
Corporation, a joint venture, ranks Danaos among the largest
containership charter owners in the world based on total TEU
capacity.
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SOURCE Danaos Corporation