HOUSTON, June 28, 2013 /PRNewswire/ -- Hyperdynamics Corporation (NYSE: HDY) announced today that its Board of Directors has approved a 1-for-8 reverse stock split of its common stock that will take effect with the beginning of trading on July 1, 2013.
Hyperdynamics' common stock is scheduled to begin trading on a split-adjusted basis on the New York Stock Exchange when the market opens on July 1, 2013 under its existing ticker symbol, HDY, and under the new CUSIP number 448954 206. When the reverse stock split becomes effective, every eight shares of issued and outstanding HDY common stock will be automatically consolidated into one issued and outstanding share, with no change in the par value per share. This will reduce the number of outstanding common shares of Hyperdynamics from approximately 168.4 million to approximately 21.1 million.
"This share consolidation does not fundamentally change our capitalization or stockholder value, but we believe increasing the price per share will solve the compliance deficiency with the New York Stock Exchange and make our stock more attractive to a broader range of institutional and other investors," Hyperdynamics Chief Executive Officer Ray Leonard said.
The reverse stock split was previously approved by stockholders at the 2013 Annual Meeting held on June 25, 2013, and the Company subsequently filed a Certificate of Amendment to its Certificate of Incorporation to effect the split.
Proportionate voting rights and other rights of common stockholders will not be affected by the reverse stock split, other than as a result of the cashing out of fractional shares. Stockholders who would otherwise hold a fractional share of common stock will receive a cash payment in lieu of a fractional share.
Registered stockholders of Hyperdynamics who hold physical stock certificates will receive a letter of transmittal from the Company's transfer agent, American Stock Transfer & Trust Company, LLC, with instructions on how to receive new share certificates. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers' particular processes, and will not be required to take any action in connection with the reverse stock split.
Hyperdynamics is an emerging independent oil and gas exploration and production company that is exploring for oil and gas offshore the Republic of Guinea in West Africa. To find out more, visit our website at www.hyperdynamics.com.
Forward Looking Statements
This news release and the Company's website referenced in this news release contain forward looking statements regarding Hyperdynamics Corporation's future plans and expected performance that are based on assumptions the Company believes to be reasonable. Statements that include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts. A number of risks and uncertainties could cause actual results to differ materially from these statements, including without limitation, funding and exploration efforts, fluctuations in oil and gas prices and other risk factors described from time to time in the Company's reports filed with the SEC. The Company undertakes no obligation to publicly update these forward looking statements to reflect events or circumstances that occur after the issuance of this news release or to reflect any change in the Company's expectations with respect to these forward looking statements.