OKLAHOMA CITY, Oct. 10, 2012 (GLOBE NEWSWIRE) -- GMX RESOURCES INC ., (NYSE:GMXR) announced today that the Company will hold a special meeting of the shareholders on November 29, 2012 to seek approval on the granting to the Board of Directors the discretionary authority to effect a reverse stock split (the "Reverse Stock Split Proposal") in a range of not less than 1-for-5 shares and not more than 1-for-13 shares of the Company's issued and outstanding common stock. The Reverse Stock Split Proposal will not include any change the number of authorized shares of our common stock.
The Company believes that granting the Board of Directors the discretion to effect a reverse stock split provides the Company with maximum flexibility to act in the best interests of its shareholders. Should the appropriate circumstances arise, effecting the reverse stock split would, among other things, help the Company to:
- Meet certain continued listing requirements of the New York Stock Exchange ("NYSE");
- Appeal to a broader range of investors to generate greater investor interest in the Company; and
- Improve the perception of our common stock as an investment security.
The Board's decision as to whether and when to implement the reverse stock split will be based on a number of factors including shareholder approval, prevailing market conditions, existing and expected trading prices for our common stock, actual or forecasted results of operations and the likely effect of such results on the market price of our common stock. The Board of Directors reserves the right not to implement the reverse split should it be deemed not in the best interest of our shareholders.The reverse stock split would not affect any shareholder's percentage ownership interests or proportionate voting power or other rights, except to the extent that it results in a shareholder receiving cash in lieu of fractional shares.