General Steel Holdings, Inc. ("General Steel" or the "Company"), a leading non-state-owned steel producer in China, announced today that its Board of Directors has approved a one-for-five reverse stock split (the "Reverse Stock Split") of its authorized shares of common stock, par value $0.001 (the "Common Stock"). On October 26, 2015, the Company filed a Certificate of Change with the Secretary of State of Nevada with an effective date and time of October 29, 2015 at7:00 am EDT (the "Effective Date").
Pursuant to Section 78.207 of the Nevada Revised Statutes, and pursuant to the Articles of Incorporation of the Company, on October 20, 2015 by unanimous written consent, the Board of Directors of the Company authorized the Reverse Stock Split. The Company believes that existing shareholders will benefit from the ability to attract a broader range of investors as a result of the Reverse Stock Split and a higher per share stock price.
On the Effective Date, every five issued and outstanding shares of Company Common Stock will be converted into one share of Company Common Stock, and the number of authorized shares of Company Common Stock will also be reduced on a one-for-five basis. While the Company's Common Stock will continue trading on the NYSE on a split-adjusted basis under the symbol "GSI," it will be assigned a new CUSIP number of 370853 202 following the effectiveness of the Reverse Stock Split.
As a result of the reverse stock split, the number of outstanding shares of General Steel's Common Stock will be reduced from approximately 83 million to approximately 17 million. No fractional shares will be issued in connection with the Reverse Stock Split. Instead, the Company will round up to the next full share of the Company's Common Stock any fractional shares that result from the Reverse Stock Split.
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