MultiPlan Corporation’s Reverse Stock Split Becomes Effective
MultiPlan (NYSE: MPLN) has announced the implementation of a 1-for-40 reverse stock split of its Class A common stock, effective September 20, 2024, at 5:00 p.m. Eastern Time. The stock will begin trading on a split-adjusted basis on September 23, 2024, under the same symbol (MPLN) but with a new CUSIP number. This action aims to increase the per share trading price to meet NYSE's continued listing criteria.
The reverse split will affect outstanding warrants, awards under the 2020 Omnibus Incentive Plan, shares available under both the 2020 Omnibus Incentive Plan and 2023 Employee Purchase Plan, and convertible notes. Proportional adjustments will be made to ensure fewer shares underlie these securities with increased prices per share. No fractional shares will be issued, with affected stockholders receiving cash payments instead.
MultiPlan (NYSE: MPLN) ha annunciato l'implementazione di uno split azionario inverso 1-per-40 delle sue azioni ordinarie di Classe A, con efficacia a partire dal 20 settembre 2024, alle 17:00, ora dell'Est. Le azioni inizieranno a essere negoziate sulla base dello split il 23 settembre 2024, sotto lo stesso simbolo (MPLN) ma con un nuovo numero CUSIP. Questa azione mira a aumentare il prezzo per azione di trading per soddisfare i criteri di continua quotazione della NYSE.
Lo split inverso influenzerà i warrant in circolazione, i premi previsti dal Piano Incentivante Omnibus 2020, le azioni disponibili sia nel Piano Incentivante Omnibus 2020 che nel Piano di Acquisto per Dipendenti 2023 e le note convertibili. Saranno apportati aggiustamenti proporzionali per garantire che un minor numero di azioni sottostia a questi strumenti con prezzi per azione aumentati. Non saranno emesse frazioni di azioni, con gli azionisti coinvolti che riceveranno pagamenti in contanti invece.
MultiPlan (NYSE: MPLN) ha anunciado la implementación de un split inverso de acciones de 1 por 40 de sus acciones ordinarias Clase A, efectivo a partir del 20 de septiembre de 2024, a las 5:00 p.m. hora del Este. Las acciones comenzarán a cotizar ajustadas por el split el 23 de septiembre de 2024, bajo el mismo símbolo (MPLN) pero con un nuevo número CUSIP. Esta acción tiene como objetivo aumentar el precio de cotización por acción para cumplir con los criterios de listado continuo de la NYSE.
El split inverso afectará a los warrants en circulación, a los premios bajo el Plan de Incentivos Omnibus 2020, a las acciones disponibles tanto en el Plan de Incentivos Omnibus 2020 como en el Plan de Compra para Empleados 2023, y a las notas convertibles. Se realizarán ajustes proporcionales para garantizar que haya menos acciones que sustenten estos valores con precios por acción incrementados. No se emitirán acciones fraccionarias, y los accionistas afectados recibirán pagos en efectivo en su lugar.
MultiPlan (NYSE: MPLN)는 40대 1 역분할을 2024년 9월 20일 오후 5시 동부 표준시부터 시행한다고 발표했습니다. 분할 조정된 기준으로 주식은 2024년 9월 23일부터 동일한 기호(MPLN)로 거래될 예정이며, 새로운 CUSIP 번호가 부여됩니다. 이 조치는 NYSE의 지속적인 상장 기준을 충족하기 위해 주당 거래 가격을 높이기 위한 것입니다.
역분할은 발행된 워런트, 2020년 종합 인센티브 계획에 따른 보상, 2020년 종합 인센티브 계획 및 2023년 직원 구매 계획에서 사용할 수 있는 주식, 전환사채에 영향을 미칩니다. 가격이 인상된 주식이 이들 증권을 뒷받침하는 주식의 수를 줄이기 위해 비례 조정이 이루어질 것입니다. 분할된 주식은 발행되지 않으며, 영향을 받는 주주들은 대신 현금 보상을 받게 됩니다.
MultiPlan (NYSE: MPLN) a annoncé la mise en œuvre d'un split inversé de 1 pour 40 de ses actions ordinaires de classe A, effectif à partir du 20 septembre 2024 à 17h00, heure de l'Est. Les actions commenceront à être négociées sur une base ajustée par le split à partir du 23 septembre 2024, sous le même symbole (MPLN) mais avec un nouveau numéro CUSIP. Cette action vise à augmenter le prix de négociation par action pour répondre aux critères de cotation continue de la NYSE.
Le split inversé affectera les bons de souscription en circulation, les récompenses dans le cadre du Plan de Motivation Omnibus 2020, les actions disponibles tant dans le Plan de Motivation Omnibus 2020 que dans le Plan d'Achat des Employés 2023, et les obligations convertibles. Des ajustements proportionnels seront effectués pour garantir qu'un nombre réduit d'actions soit à la base de ces titres avec des prix augmentés par action. Aucune action fractionnaire ne sera émise, les actionnaires concernés recevant des paiements en espèces à la place.
MultiPlan (NYSE: MPLN) hat die Implementierung eines 1-zu-40 Rückwärtssplits seiner Stammaktien der Klasse A bekannt gegeben, der am 20. September 2024 um 17:00 Uhr Eastern Time wirksam wird. Die Aktien werden ab dem 23. September 2024 unter demselben Symbol (MPLN) aber mit einer neuen CUSIP-Nummer split-adjustiert gehandelt. Diese Maßnahme zielt darauf ab, den Handelskurs pro Aktie zu erhöhen, um die fortwährenden Listungskriterien der NYSE zu erfüllen.
Der Rückwärtssplit hat Auswirkungen auf ausstehende Warrants, Auszeichnungen im Rahmen des 2020 Omnibus Incentive Plans, verfügbare Aktien sowohl im 2020 Omnibus Incentive Plan als auch im 2023 Employee Purchase Plan sowie auf wandelbare Anleihen. Proportionale Anpassungen werden vorgenommen, um sicherzustellen, dass weniger Aktien diesen Wertpapieren zugrunde liegen, bei gleichzeitig höheren Preisen pro Aktie. Es werden keine Bruchteilaktien ausgegeben, und betroffene Aktionäre erhalten stattdessen Barzahlungen.
- Aims to meet NYSE's price criteria for continued listing
- Maintains current NYSE symbol (MPLN)
- Proportional adjustments to warrants, awards, and convertible notes to maintain value
- Potential dilution of shareholder ownership
- Risk of not meeting NYSE listing requirements despite the reverse split
- Cash payments for fractional shares may result in forced partial liquidation for some shareholders
Insights
MultiPlan's 1-for-40 reverse stock split is a strategic move to maintain NYSE listing compliance. This action consolidates shares, potentially boosting the stock price artificially without changing the company's underlying value. While it may temporarily stave off delisting concerns, it's important to note that reverse splits often signal financial distress. Investors should scrutinize MultiPlan's fundamental performance and growth prospects. The adjustment to outstanding securities and employee incentives maintains proportional ownership but could impact liquidity. Long-term implications depend on the company's ability to improve its financial health and market perception post-split.
This reverse split reflects broader challenges in the healthcare cost management sector. MultiPlan's stock performance likely indicates market skepticism about its business model or competitive position. The move may deter some retail investors due to reduced share counts and potentially higher trading costs. However, it could attract institutional investors who have minimum share price requirements. Key metrics to watch post-split include trading volume and institutional ownership changes. The market's reaction in the coming weeks will be important in assessing whether this financial engineering translates to improved investor confidence or merely postpones underlying issues.
The reverse stock split's legal implications are significant. By maintaining NYSE listing, MultiPlan avoids potential contractual breaches tied to its listed status. The company has meticulously adjusted related securities to preserve proportional rights, important for avoiding shareholder disputes. The cash payment for fractional shares is a standard practice to ensure fairness. However, this move could trigger disclosure obligations under SEC regulations, particularly if it materially affects the company's financial outlook. Shareholders should closely review upcoming SEC filings for any changes in risk factors or forward-looking statements related to this corporate action.
MultiPlan Common Stock to Begin Trading on a Split-Adjusted Basis on September 23, 2024
At the Split Effective Time, each share of common stock was automatically reclassified into one fortieth (1/40th) of a share of issued and outstanding common stock.
Proportional adjustments will also be made to: (1) all then-outstanding warrants exercisable for common stock, such that fewer shares would underlie such securities and the purchase price per share will be increased; (2) all then-outstanding awards, including, without limitation, those issued under the Company’s 2020 Omnibus Incentive Plan, as amended, such that fewer shares of common stock would underlie such awards and the exercise price per share of the options will be increased; (3) the number of shares of common stock available for issuance under each of the Company’s 2020 Omnibus Incentive Plan, as amended, and the Company’s 2023 Employee Purchase Plan, such that fewer shares will be available for issuance under both plans; and (4) the number of shares of common stock issuable upon conversion of the Company’s then-outstanding
No fractional shares of Common Stock will be issued as a result of the Reverse Stock Split. Stockholders who would otherwise be entitled to a fractional share of Common Stock are instead entitled to receive a cash payment (without interest) in an amount equal to their respective pro rata share of the net proceeds of the sale of the fractional shares. The Reverse Stock Split will not affect the number of authorized shares of Common Stock or the par value of Common Stock.
The reverse stock split is primarily intended to increase the per share trading price of MultiPlan’s common stock in order to meet the NYSE’s price criteria for continued listing.
About MultiPlan
MultiPlan is committed to bending the cost curve in healthcare by delivering transparency, fairness, and affordability to the US healthcare system. Our focus is on identifying medical savings, helping to lower out-of- pocket costs, and reducing or eliminating balance billing for healthcare consumers. Leveraging sophisticated technology, data analytics, and a team rich with industry experience, MultiPlan interprets customers’ needs and customizes innovative solutions that combine its payment and revenue integrity, network-based, data and decision science, and analytics-based services. MultiPlan delivers value to more than 700 healthcare payors, over 100,000 employers, 60 million consumers, and 1.4 million contracted providers. For more information, visit multiplan.com.
Forward Looking Statements
This press release contains forward-looking statements. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “forecasts,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including the discussion in this press release of the reverse stock split and expected benefits. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date they are made. Any forward-looking statements that we make herein are not guarantees of future performance and actual results may differ materially from those in such forward-looking statements as a result of various factors. Factors that may impact such forward-looking statements also include the factors discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly Report on Form 10-Q for the three months ended June 30, 2024; and other factors beyond our control. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company’s periodic and other filings are accessible on the SEC’s website at www.sec.gov. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Investor Relations
Luke
SVP, Finance & Investor Relations MultiPlan
866-909-7427
investor@multiplan.com
Shawna Gasik
AVP, Investor Relations MultiPlan
866-909-7427
investor@multiplan.com
Media Relations
Pamela Walker
AVP, Marketing & Communication MultiPlan
781-895-3118
press@multiplan.com
Source: MultiPlan Corporation
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