PIRAEUS, Greece, July 27 /PRNewswire-FirstCall/ -- NewLead Holdings Ltd. (Nasdaq: NEWL) ("NewLead" or the "Company") today announced that a 1-for-12 reverse stock split of its common shares has been approved by the Company's Board of Directors and by written consent of a majority of shareholders, effective upon the opening of the markets on August 3, 2010.
The reverse split will consolidate every 12 common shares into one common share, par value of $0.01 per share. The number of authorized common shares and preferred shares of NewLead will not be affected by the reverse split. In respect to the underlying common shares associated with any derivative securities, such as warrants, options and convertible notes, the conversion and exercise prices and number of common shares issued will be adjusted in accordance to the 1:12 ratio. As a result of the reverse stock split, the number of common shares of the Company's common shares outstanding will be reduced from 88,363,265 to approximately 7,363,605 shares, subject to rounding up of all fractional shares to the nearest whole share.
The reverse split will allow the Company to maintain its listing on the NASDAQ Global Select Market by maintaining compliance with the minimum bid requirement for continued listing. The transaction will also establish a higher market price for the Company's common shares and reduce per share transaction fees as well as certain administrative costs.
NewLead has retained its transfer agent, Computershare, to act as exchange agent for the reverse stock split. After the reverse split takes effect, shareholders will receive information from Computershare regarding the process for exchanging their common shares. Computershare will notify shareholders of record that hold physical certificates as of the effective time to transmit outstanding share certificates, and, unless requested, will subsequently issue new book entry statements of holding representing one post-split common share for every 12 common shares held of record as of the effective time. Shareholders that currently hold common shares in book entry form will receive updated statements of holding reflecting the reverse split and need not take any action.