Courtesy of Benzinga.
Popular, Inc. (NASDAQ: BPOP) announced today that the proposed 1 for 10 reverse split of its common stock was approved by Popular’s stockholders on April 27, 2012 at the annual meeting of stockholders and is expected to become effective as of 11:59 p.m. Atlantic Standard Time on May 29, 2012.
Upon the effectiveness of the reverse stock split, Popular stockholders will receive one new share of Popular common stock for every ten shares they hold. Popular’s common stock will begin trading on a split-adjusted basis when the market opens on May 30, 2012.
The reverse stock split is expected to lead Popular’s common stock to trade at approximately ten times the price per share at which it trades prior to the effectiveness of the reverse stock split. Popular, however, cannot assure that the price of its common stock after the reverse split will reflect the 1 for 10 reverse split ratio, that the price per share following the effective time of the reverse split will be maintained for any period of time, or that the price will remain above the pre-split trading price.
In connection with the reverse stock split, the total number of common shares authorized under Popular’s Restated Certificate of Incorporation will be reduced from 1,700,000,000 to 170,000,000 shares. As of February 27, 2012, there were approximately 1,026,699,926 shares of Popular’s common stock outstanding. Effecting the 1 for 10 reverse split will reduce that amount to approximately 102,669,992. The reverse split will not change the number of shares of Popular’s authorized preferred stock, which will remain at 30,000,000 shares.
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