BARBERTON, Ohio--(BUSINESS WIRE)--Babcock & Wilcox Enterprises, Inc. ("B&W" or the “Company”) (NYSE: BW) announced today that its board of directors approved a one-for-ten reverse stock split of the outstanding and treasury shares of the Company’s common stock. The reverse stock split was previously approved by a majority of the Company’s stockholders at the Company’s annual meeting of stockholders held on June 14, 2019.
The reverse stock split, which is expected to become effective after the market closes on July 23, 2019, will follow the completion of the previously announced rights offering. Once effective, every 10 shares of the Company’s outstanding and treasury common stock will automatically be converted into one share of common stock. No fractional shares will be issued if, as a result of the reverse stock split, a stockholder would otherwise become entitled to a fractional share. Instead, stockholders who would otherwise hold fractional shares will be entitled to cash payments (without interest) in respect of such fractional shares. The reverse stock split will not impact any stockholder’s percentage ownership of the Company, subject to the treatment of fractional shares. Following the reverse stock split, the number of outstanding and treasury shares of the Company’s common stock will be reduced by a factor of 10.
“This reverse stock split is another key step in B&W’s turnaround efforts and reflects the importance we place in remaining a listed company on the New York Stock Exchange,” said Kenneth Young, B&W Chief Executive Officer. “We look forward to providing more information about our continuing progress when we release the company’s second quarter 2019 financial results.”
The Company’s common stock is expected to begin trading on the New York Stock Exchange (“NYSE”) on a split-adjusted basis when the market opens on July 24, 2019 under a new CUSIP number, 05614L209. The trading symbol for the Company’s common stock will remain “BW.”
The reverse stock split will increase the market price per share of the Company’s common stock to allow the Company to regain compliance with the NYSE’s continued listing standards relating to minimum price per share.
Computershare Trust Company, N.A., the Company’s transfer agent, will act as the exchange agent for the reverse stock split. Additional information regarding the reverse stock split can be found in the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission on May 13, 2019.
Headquartered in Barberton, Ohio, Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the effectiveness of the reverse stock split and the Company’s ability to regain compliance with NYSE continued listing requirements. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the completion and settlement of the Company’s current rights offering and the other equitization transaction described in the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission on May 13, 2019; potential volatility in the price of the Company’s common stock following the reverse stock split; the Company’s ability to attain the necessary stock price levels to regain compliance with the NYSE continued listing standards or, if achieved, to continue to satisfy the NYSE’s qualitative and quantitative continued listing standards in the future; and a determination by the Company’s board of directors not to implement or to abandon the proposed reverse stock split in its discretion. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors that may impact the forward-looking statements contained in this release, see B&W’s filings with the Securities and Exchange Commission, including B&W’s most recent annual report on Form 10-K and quarterly report on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.