HighPoint Resources Announces 1-for-50 Reverse Stock Split

Rhea-AI Summary

HighPoint Resources Corporation (NYSE: HPR) announced a 1-for-50 reverse stock split of its common stock, effective October 30, 2020. This move aims to raise the share price above the $1.00 minimum required for NYSE listing. The split was approved by stockholders and reduces outstanding shares from approximately 215 million to about 4.3 million. Fractional shares will be compensated in cash. The trading symbol remains 'HPR', with a new CUSIP number of 43114K 207.

Positive

• Reverse stock split aimed to maintain compliance with NYSE listing requirements
• Stockholder approval indicates confidence in management's strategy

Negative

• Necessity of reverse split raises concerns about previous stock performance
• Increased risk of volatility due to reduced share base

DENVER, Oct. 20, 2020 (GLOBE NEWSWIRE) -- HighPoint Resources Corporation (the "Company") (NYSE: HPR) today announced that the Company will effect a 1-for-50 reverse stock split of its common stock. The Company’s common stock is expected to begin trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at the market open on October 30, 2020.

The reverse stock split is intended to increase the per share trading price of the Company’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on the NYSE. The reverse stock split was approved by the Company’s stockholders at the Company’s Annual Meeting of Stockholders held on April 28, 2020 to be determined at the Board’s discretion within approved parameters. The specific ratio was subsequently approved by the Company’s Board. As a result of the reverse stock split, every fifty pre-split shares of common stock outstanding will become one share of common stock. Any fractional shares that result from the reverse stock split will be canceled and stockholders who would otherwise hold fractional shares as a result of the reverse stock split will be entitled to receive cash in lieu of such fractional shares. The reverse stock split reduces the number of shares of the Company’s outstanding common stock from approximately 215,260,000 million shares to approximately 4,305,000 million shares, subject to adjustment of the rounding of fractional shares.

The trading symbol for the Company’s common stock will remain “HPR.” The new CUSIP number for the common stock following the reverse stock split is 43114K 207.

ABOUT HIGHPOINT RESOURCES CORPORATION

HighPoint Resources Corporation (NYSE: HPR) is a Denver, Colorado based company focused on the development of oil and natural gas assets located in the Denver-Julesburg Basin of Colorado. Additional information about the Company may be found on its website at www.hpres.com.

Company contact: Larry C. Busnardo, Vice President, Investor Relations, 303-312-8514

 

FAQ

What is the purpose of HighPoint Resources' reverse stock split?

The reverse stock split aims to increase the trading price per share to comply with the NYSE's minimum bid price requirement of $1.00.

When will the reverse stock split for HPR take effect?

The reverse stock split will take effect on October 30, 2020.

What will happen to fractional shares resulting from the reverse stock split of HPR?

Fractional shares will be canceled, and stockholders will receive cash in lieu of those fractional shares.

How many shares will be outstanding after the reverse stock split?

Approximately 4.3 million shares will be outstanding following the reverse stock split.

Will the stock symbol for HighPoint Resources change after the split?

No, the stock symbol 'HPR' will remain unchanged after the reverse stock split.