Plans for a Pier 1 reverse stock split have PIR stock falling on Thursday.
The plan from Pier 1 (NYSE:PIR) has it enacting a reveres split of PIR stock on a 1 to 20 basis. The plan was brought up at the company’s annual shareholder meeting an investors voted on it. This saw roughly 62% of PIR stockholders vote in favor of the Pier 1 reverse stock split.
Following the completion of the shareholder meeting, plans for the Pier 1 reverse stock split moved forward. This includes the company setting the split to take place at 12:01 a.m. on June 20, 2019.
According to the company, the goal of the Pier 1 reverse stock split is to keep the company’s shares on the New York Stock Exchange. The NYSE requires the companies listed on it have a trading price of $1.00 or higher on the last trading day of any calendar month during the six-month cure period.
This Pier 1 reverse stock split will have the company greatly reducing the number of PIR shares that are available for trade. It will drop it down from the current total of 84,990,884 shares to a new total of 4,249,544.
Pier 1 also notes that there will be no fractional shares as a result of its Pier 1 reverse stock plan. Instead, any fractional shares that would manifest will be combined together and sold off by the company’s transfer agent. Investors that would have owned fractional shares will be sent a cash payment worth the value of the fractional share.
PIR stock was down 25% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.