Dean Foods (DF) announced on Wednesday, that the company will do a 1-for-2 reverse stock split of its common stock.
The split is expected to go into effect after the market closes on Monday, and will begin trading on a split adjusted basis on Tuesday. When the split goes into effect, every two shares of Dean Foods common stock will combine into one. This will take the amount of Dean Foods stock down from 188.5 million to 94.3 million. The stock will continue to trade on the NYSE with the trading symbol “DF.” There will be no fractional shares of Dean Foods stock. Investors who would have a fractional share in the company will instead get a cash payment for what the fractional share would be worth. The reverse stock split will apply to issued shares, which includes shares held in the company’s treasury, reports The Wall Street Journal.
Dean Foods saw a 6% decrease of sales during its second quarter. The company lost its contract with Meijer grocery stores last August, and also lost a contract with Walmart (WMT) earlier this year.
DF shares were down 1% as of Thursday morning, continuing a 38% year-to-date decrease