Babcock & Wilcox Announces One-for-Ten Reverse Stock Split
July 11 2019 - 4:30PM
Business Wire
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
“Company”) (NYSE: BW) announced today that its board of directors
approved a one-for-ten reverse stock split of the outstanding and
treasury shares of the Company’s common stock. The reverse stock
split was previously approved by a majority of the Company’s
stockholders at the Company’s annual meeting of stockholders held
on June 14, 2019.
The reverse stock split, which is expected to become effective
after the market closes on July 23, 2019, will follow the
completion of the previously announced rights offering. Once
effective, every 10 shares of the Company’s outstanding and
treasury common stock will automatically be converted into one
share of common stock. No fractional shares will be issued if, as a
result of the reverse stock split, a stockholder would otherwise
become entitled to a fractional share. Instead, stockholders who
would otherwise hold fractional shares will be entitled to cash
payments (without interest) in respect of such fractional shares.
The reverse stock split will not impact any stockholder’s
percentage ownership of the Company, subject to the treatment of
fractional shares. Following the reverse stock split, the number of
outstanding and treasury shares of the Company’s common stock will
be reduced by a factor of 10.
“This reverse stock split is another key step in B&W’s
turnaround efforts and reflects the importance we place in
remaining a listed company on the New York Stock Exchange,” said
Kenneth Young, B&W Chief Executive Officer. “We look forward to
providing more information about our continuing progress when we
release the company’s second quarter 2019 financial results.”
The Company’s common stock is expected to begin trading on the
New York Stock Exchange (“NYSE”) on a split-adjusted basis when the
market opens on July 24, 2019 under a new CUSIP number, 05614L209.
The trading symbol for the Company’s common stock will remain
“BW.”
The reverse stock split will increase the market price per share
of the Company’s common stock to allow the Company to regain
compliance with the NYSE’s continued listing standards relating to
minimum price per share.
Computershare Trust Company, N.A., the Company’s transfer agent,
will act as the exchange agent for the reverse stock split.
Additional information regarding the reverse stock split can be
found in the Company’s Definitive Proxy Statement filed with the
Securities and Exchange Commission on May 13, 2019.
About B&W
Headquartered in Barberton, Ohio, Babcock & Wilcox is a
global leader in energy and environmental technologies and services
for the power and industrial markets. Follow us on Twitter
@BabcockWilcox and learn more at www.babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
the effectiveness of the reverse stock split and the Company’s
ability to regain compliance with NYSE continued listing
requirements. These forward-looking statements are based on
management’s current expectations and involve a number of risks and
uncertainties, including, among other things, the completion and
settlement of the Company’s current rights offering and the other
equitization transaction described in the Company’s Definitive
Proxy Statement filed with the Securities and Exchange Commission
on May 13, 2019; potential volatility in the price of the Company’s
common stock following the reverse stock split; the Company’s
ability to attain the necessary stock price levels to regain
compliance with the NYSE continued listing standards or, if
achieved, to continue to satisfy the NYSE’s qualitative and
quantitative continued listing standards in the future; and a
determination by the Company’s board of directors not to implement
or to abandon the proposed reverse stock split in its discretion.
If one or more of these risks or other risks materialize, actual
results may vary materially from those expressed. For a more
complete discussion of these and other risk factors that may impact
the forward-looking statements contained in this release, see
B&W’s filings with the Securities and Exchange Commission,
including B&W’s most recent annual report on Form 10-K and
quarterly report on Form 10-Q. B&W cautions not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this release, and undertakes no obligation to update
or revise any forward-looking statement, except to the extent
required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190711005801/en/
Investor Contact: Megan Wilson Vice President, Corporate
Development & Investor Relations Babcock & Wilcox
704.625.4944 | investors@babcock.com
Media Contact: Ryan Cornell Public Relations Babcock
& Wilcox 330.860.1345 | rscornell@babcock.com
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