Sanchez Production Partners LP implemented a 1-for-10 reverse split on its common units, the company said July 9, noting that the split becomes effective after close of trading Aug. 3.
Gerald F. Willinger, interim CEO of Sanchez Production’s general partner, said that the company is building a development relationship with a committed sponsor, executing management service and related agreements, transitioning employees to Sanchez Oil & Gas Corp., converting Sanchez Production to a limited partnership, and executing the first transaction with Sanchez Energy Corp. (SN).
The reverse stock split supports the goal of expanding the asset base through a large-scale transaction, and other goals.
Unitholders will receive one common unit for every 10 they own at the close of trading on Aug. 3. All fractional units created by the reverse split will be rounded to the nearest whole unit. Each unitholder will get at least one unit, Sanchez Production said.
The split should decrease the number of outstanding common units to 3.1 million from about 31.5 million.
The transfer agent is ComputerShare Investor Services, Sanchez Production said.
A new CUSIP number for the units will be issued, and the units will continue trading under the ticker “SPP” on the NYSE MKT Exchange.
Sanchez Production Partners LP is based in Houston.
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