Ascena Retail Group, Inc. Announces One-for-Twenty Reverse Stock Split
Common Stock to Begin Trading on a Split-Adjusted Basis at Market Open on December 19, 2019
MAHWAH, N.J., Dec. 19, 2019 (GLOBE NEWSWIRE) -- ascena retail group, inc. (Nasdaq:ASNA) (the “Company”) today announced that the Company’s board of directors has approved a reverse stock split of
the Company’s common stock, at a ratio of 1-for-20, and a corresponding reduction in the number of the Company’s authorized shares of common stock, following the approval of the reverse stock split
by the Company’s stockholders at the Company’s annual meeting of stockholders held on December 10, 2019.
The reverse stock split became effective at 5:30 p.m. on December 18, 2019. Beginning with the opening of trading on December 19, 2019, the Company’s common stock will trade on the The Nasdaq Global Select Market (“Nasdaq”) on a split-adjusted basis under a new CUSIP number, 04351G 200. The Company’s trading symbol will continue to be “ASNA.”
The objective of the reverse stock split is to enable the Company to regain compliance with the Nasdaq minimum share price continued listing rule as required by Nasdaq Listing Rule 5450(a)(1) and maintain its listing on Nasdaq. The Company can regain compliance with the Nasdaq minimum share price requirement by maintaining a closing bid price of $1.00 per share for a minimum of ten consecutive business days prior to January 27, 2020.
The reverse stock split reduced the number of shares of common stock issued and outstanding from approximately 199,444,436 to approximately 9,972,221. The authorized number of shares of common stock has been reduced by a corresponding ratio to 18 million. The reverse stock split affects all issued and outstanding shares of the Company’s common stock and shares held in treasury, as well as the number of shares of common stock available for issuance under the Company’s stock incentive plans and outstanding awards subject to those plans. The reverse stock split affects all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s common stock, except for adjustments that may result from the treatment of fractional shares as described below.