Two Harbors Investment Corp. Announces Completion of Reverse Stock Split

Rhea-AI Summary

Two Harbors Investment Corp. (NYSE: TWO) has successfully executed a one-for-four reverse stock split, reducing its outstanding shares from approximately 345 million to 86 million. Correspondingly, the authorized shares decreased from 700 million to 175 million, while the par value per share remains unchanged. Shareholders are advised to consult with their financial and tax advisors regarding the implications of this move. The company emphasizes that the press release includes forward-looking statements that involve risks and uncertainties, as detailed in its SEC filings.

Positive

• Successful one-for-four reverse stock split, reducing outstanding shares significantly.
• Reduction in authorized shares aligns with the reverse split, possibly improving stock market perception.

Negative

• Reverse stock split may indicate underlying issues such as low stock price or market confidence.
• Shareholders must consider potential tax implications due to the reverse split.

NEW YORK--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today announced the completion of its previously announced one-for-four reverse stock split of the outstanding shares of the company’s common stock (the “Reverse Stock Split”). The Reverse Stock Split reduced the number of outstanding shares of the company’s common stock from approximately 345 million shares to approximately 86 million shares. In addition, the number of authorized shares of the company’s common stock was also reduced on a one-for-four basis, from 700 million to 175 million. The par value of each share of common stock remained unchanged.

Two Harbors’ common stockholders are encouraged to consult their financial advisors and tax advisors regarding the consequences of the Reverse Stock Split, including the applicability and effect of any U.S. federal, state, local or foreign tax laws.

Additional information regarding the Reverse Stock Split, including answers to frequently asked questions, is available on the company’s website at www.twoharborsinvestment.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Two Harbors does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in the company’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning the company or matters attributable to the company or any person.

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in St. Louis Park, MN.

Additional Information

Stockholders of Two Harbors and other interested persons may find additional information regarding the company at www.twoharborsinvestment.com, at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Two Harbors Investment Corp., 1601 Utica Avenue South, Suite 900, St. Louis Park, MN 55416, telephone (612) 453-4100.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006303/en/

Paulina Sims, Senior Director, Investor Relations, Two Harbors Investment Corp., (612) 446-5431, Paulina.Sims@twoharborsinvestment.com.

Source: Two Harbors Investment Corp.

FAQ

What is the significance of the reverse stock split for Two Harbors (TWO)?

The reverse stock split reduces the number of outstanding shares, potentially improving the stock's market perception.

How many shares are outstanding after the reverse stock split of Two Harbors (TWO)?

After the reverse stock split, Two Harbors has approximately 86 million outstanding shares.

What should shareholders do following the reverse stock split of Two Harbors (TWO)?

Shareholders are encouraged to consult their financial and tax advisors regarding the effects of the reverse stock split.

What are the new authorized shares for Two Harbors (TWO) after the reverse stock split?

The authorized shares of Two Harbors are now reduced to 175 million.

Does the reverse stock split of Two Harbors (TWO) affect the par value of shares?

No, the par value of each share remains unchanged after the reverse stock split.