Intrepid Sets Date for Shareholder Vote on Reverse Stock Split

DENVER, CO, June 30, 2020 (GLOBE NEWSWIRE) -- Intrepid Potash Inc. (NYSE:IPI) (“Intrepid”) has scheduled a special meeting of stockholders on Tuesday, July 28, 2020, at 10:00 a.m., Mountain Time to vote on a non-dilutive reverse split of Intrepid’s common stock at a ratio ranging from one-for-three (1:3) to one-for-fifteen (1:15) and a related reduction in authorized shares. The final ratio will be determined by Intrepid’s board based on, among other factors, its stock price on the split date.

While Intrepid has regained compliance with NYSE minimum share price requirements, management believes a reverse split is in the best interests of Intrepid and stockholders by allowing more flexibility to, among other things, potentially improve the marketability and liquidity of its common stock and avoid the possibility of future noncompliance with the listing requirements of the NYSE.

The reverse split is not expected to have any impact on Intrepid’s underlying business beyond freeing up management time to focus on generating shareholder value and execute Intrepid’s business strategy. Intrepid reviewed several hundred examples of companies that have effected reverse splits as well as extensive academic research and found no significant relationship between splits and individual company valuations one year later. Furthermore, Intrepid expects that achieving a share price over $5 through the reverse split will expose Intrepid stock to a broader potential investor base who would not otherwise have been able to invest in Intrepid’s due to investment policies.

Intrepid’s management reiterates that the reverse split is not intended to have any dilutive effect on shareholders. If approved by the stockholders and implemented, the reduction in authorized shares accompanying the reverse split, depending on the reverse split ratio, is intended to maintain as nearly as practicable the current proportion of number of authorized shares of Intrepid’s common stock relative to the number of shares of common stock issued and outstanding.  At present, Intrepid does not have any plans for the authorized but unissued shares of common stock that will become available following the implementation of a reverse stock split, other than to accommodate additional shares of common stock (on a pre-reverse split basis) to be authorized and reserved for future equity awards under Intrepid’s Equity Incentive Plan.