Alimco Financial Corporation (ALMC) announced today a 1-for-10,000 share reverse stock split of its common stock (the “Reverse Split”), effective May 31, 2017 at 6:00 pm Eastern. The Reverse Split was followed immediately by a 1,000-for-1 share forward stock split (the “Forward Split”).
All record stockholder accounts holding less than 10,000 shares of common stock immediately prior to the effective time of the Reverse Split will receive a cash payment of $1.21 per share on a pre-split basis in lieu of receiving a fractional share of common stock. Any fractional shares of common stock existing after the Forward Split were rounded up to the next full share.
The company’s transfer agent, Computershare Inc, is the exchange agent for the stock split. Computershare will send stockholders holding stock certificates a letter of transmittal providing instructions for the exchange of their stock certificates for payment of cash-in-lieu of fractional shares or post-split share certificates.
Registered stockholders holding shares of the company’s common stock electronically in book-entry form with Computershare are not required to take any action to receive payment of cash-in-lieu of fractional shares or post-split shares. Such stockholders will have their positions automatically adjusted to reflect the stock split and will receive payment of cash-in-lieu of fractional shares from Computershare.
Stockholders holding shares with a broker or other nominee are also not required to take any action in connection with the stock split. Such stockholders will have their positions automatically adjusted to reflect the stock split and will receive payment of cash-in-lieu of fractional shares in accordance with their broker’s or nominee’s procedures for processing the transaction.
Stockholders with questions about their cash-in-lieu payment or post-split shares can contact Computershare at 1-800-546-5141.
Alan B. Howe