Red Mountain Resources Inc. (OTC: RDMPD) detailed the results of its 1-for-10 reverse stock split Jan. 31, the company said. Additionally, the company’s state of incorporation was switched from Florida to Texas, the company said that day.
Both the reverse split and the reincorporation were approved by shareholders at the Dec. 20, 2013 annual meeting, the company added.
Common shares began trading on the 1-for-10 reverse split on OTC Jan. 31, with a new CUSIP number, 75678V302, the company said. Common shares will temporarily trade under the symbol "RDMPD" for 20 business days, before the "RDMP" symbol returns, Red Mountain added.
Upon effectiveness, every ten common shares were automatically combined into one common share, the company said. This reduced the number of outstanding shares to 13.4 million, down from roughly 134 million, Red Mountain added. Additionally, the number of authorized shares was reduced to 50 million shares, down from 500 million, the company said.
No fractional shares were issued, the company said. Instead, the company's transfer agent will aggregate all fractional shares and sell them into the market. Shareholders who would have held fractional shares will receive a cash payment from that sale's net proceeds, Red Mountain added.
Additionally, Red Mountain said that its state of incorporation is now Texas.
Broadridge Corporate Issuer Solutions Inc. is Red Mountain’s exchange agent for the reverse split, the company said.
Red Mountain Resources is a Dallas-based energy company that acquires, develops and explores oil and natural gas properties. It works in the Permian Basin, in both Texas and New Mexico, and the Texas Gulf Coast, onshore.
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