Midstates Petroleum Co. Inc. (NYSE: MPO) has made a 1-for-10 reverse stock split of the company’s common stock. The 1-for-10 reverse stock split will be effective as of the close of business on Aug. 3, and the company's stock will begin trading on a split-adjusted basis on Aug. 4. Midstates’ stock will continue to trade on the New York Stock Exchange under the trading symbol “MPO” but will trade under a new CUSIP number.
When the reverse stock split becomes effective, every ten shares of issued and outstanding common stock will be automatically combined into one issued and outstanding share of common stock. The reverse stock split will reduce the number of shares of the company's common stock currently outstanding from 72 million to 7.2 million. In addition, the number of authorized shares of the company's common stock will decrease from 300 million to 100 million.
Midstates will not issue any fractional shares in connection with the reverse stock split; stockholders who would otherwise hold a fractional share of the company's common stock will receive a cash payment in lieu of such fractional share.
American Stock Transfer and Trust Company, LLC, the company's transfer agent, will act as its exchange agent for the reverse stock split.