Dynex Capital, Inc. Declares Monthly Common Stock Dividend for June 2019 and Announces Implementation of Reverse Stock Split
June 06 2019 - 5:37PM
Business Wire
Dynex Capital, Inc. (NYSE: DX) announced today the Company’s
Board of Directors has declared a cash dividend on its common stock
for the month of June and that its Board of Directors will
implement a one-for-three reverse stock split of the Company’s
common shares.
June 2019 Common Stock Dividend
The Board declared a common stock dividend, to be paid on a post
one-for-three reverse stock split basis of $0.18 per share, payable
on July 3, 2019 to holders of record on June 26, 2019.
One-for-Three Reverse Stock Split
The reverse stock split will take effect after the market close
on June 20, 2019. At that time, every three issued and outstanding
shares of common stock will be converted into one share of common
stock. The Company expects that the split-adjusted shares of its
common stock will begin trading on the New York Stock Exchange at
the open of the market on June 21, 2019 under the new CUSIP number:
26817Q886. No change will be made to the trading symbol for the
Company's common stock, "DX", in connection with the reverse stock
split. The par value of the common stock will not be affected by
the reverse stock split.
The Company is implementing the reverse stock split with the
objective of making the common stock more attractive to a broader
range of investors as well as a more cost-effective investment,
which it believes will enhance the liquidity of the holders of the
Company’s common stock. The Board also recognized that our
shareholders and potential shareholders have share price minimums
and after the reverse stock split the Company’s shares are expected
to trade above those minimums.
Computershare, the Company's transfer agent, is acting as the
exchange agent for the reverse stock split. Shareholders of record
holding certificates representing shares of the Company's common
stock as of 5:00 p.m. E.T. on June 20, 2019 will receive from
Computershare a letter of transmittal to exchange their existing
shares of common stock for new shares of common stock.
No fractional shares will be issued in connection with the
reverse stock split. Instead, shareholders who would otherwise be
entitled to receive fractional shares of common stock will receive
a cash payment for the fractional share interest based on the
closing price per share of the common stock as reported on the New
York Stock Exchange on June 20, 2019.
Shareholders who own their shares in book-entry form with a
broker-dealer do not need to take any action with respect to the
reverse stock split. Shareholders who hold stock certificates
evidencing their shares of the Company's common stock should not
send in their stock certificates until they receive a letter of
transmittal from Computershare, which will contain detailed
instructions for exchanging their existing stock
certificates. The reverse stock split will not change the
terms of the Company’s common stock; shares of the Company’s common
stock will have the same voting rights and rights to dividends and
distributions, and will be identical in all other respects to the
Company’s common stock now authorized.
Based on 73,815,376 shares of common stock outstanding as of
June 5, 2019, immediately following the reverse stock split
and without giving any effect to the payment of cash in lieu of
fractional shares, the Company will have approximately 24,605,125
shares of common stock outstanding.
In connection with the reverse stock split, the number of shares
of the Company’s common stock authorized for issuance will be
decreased from 200,000,000 to 90,000,000. In addition, the
conversion rate for both series of the Company’s preferred stock
will be adjusted for the reverse stock split, effective June 20,
2019, to reduce the number of shares of common stock into which
each share of preferred stock may be convertible in accordance with
the Company’s Articles of Incorporation.
For additional information on the reverse stock split, please
visit the FAQs to be posted in the “About Us” section on the
Company’s website at www.dynexcapital.com.
Dynex Capital, Inc. is an internally managed real estate
investment trust, or REIT, which invests in mortgage assets on a
leveraged basis. The Company invests in Agency and non-Agency
RMBS, CMBS, and CMBS IO. Additional information about Dynex
Capital, Inc. is available at www.dynexcapital.com.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release
regarding the business of Dynex Capital, Inc. that are
not historical facts are “forward-looking statements” that involve
risks and uncertainties. For a discussion of these risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see “Risk
Factors” in the Company’s Annual Report on Form 10-K and other
reports filed with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190606005870/en/
Alison Griffin804-217-5897
Dynex Capital (NYSE:DX)
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