PIRAEUS, Greece, Nov. 20, 2013 /PRNewswire/ -- NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company") today announced that a 1-for-3 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 commencement of trading on December 6, 2013. The reverse split will consolidate every three common shares into one common share, par value of $0.01 per share. As a result of the reverse stock split, the number of common shares of the Company's common shares outstanding would currently be reduced from 47,663,633 to approximately 15,887,878 shares, subject to rounding up of all fractional shares to the nearest whole share. 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 issuable generally will be adjusted in accordance to the 1:3 ratio. The number of authorized common shares and preferred shares of NewLead will not be affected by the reverse split. It is anticipated that the transaction will establish a higher market price for the Company's common shares and reduce per share transaction fees as well as certain administrative costs. The reverse stock split is being undertaken in an effort to regain compliance with the continued listing standards of Nasdaq. NewLead's transfer agent, Continental Stock Transfer & Trust Co ("Continental"), will also act as exchange agent for the reverse stock split. After the reverse split takes effect, shareholders will receive information from Continental regarding the process for exchanging their common shares. Continental 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 three 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.
NewLead Holdings (NEWL) stock is lower in after-hours trading following a judge's decision to deny the company its preliminary injunction attempting to stop Ironridge Global IV from obtaining additional shares of NewLead.
Shares of NewLead (NEWL) are up over 40% after the Greek shipping company announced that the company was granted a Temporary Restraining Order against Ironridge Global IV, Ltd. prohibiting the further issuance of common shares in payment of dividends on Series A Preference Shares of NewLead.