SolarWinds Announces Reverse Stock Split
SolarWinds Corporation (NYSE: SWI), a leading provider of simple, powerful, and secure IT management software, announced today that it intends to effect a reverse stock split of its common stock at a ratio of one post-split share for every two pre-split shares. The reverse stock split will become effective at 5:00 p.m. ET on Friday, July 30, 2021. SolarWinds common stock will continue to trade on the NYSE under the symbol SWI and will begin trading on a split-adjusted basis on Monday, August 2, 2021.
At the effective time of the reverse stock split, every two shares of SolarWinds issued and outstanding common stock will be converted automatically into one issued and outstanding share of common stock without any change in the par value per share. Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 2-for-1 reverse stock split.
No fractional interest in a share of common stock will be deliverable upon the effectiveness of the reverse stock split. All shares of common stock (including fractions thereof) held by a holder immediately prior to the reverse stock split will be aggregated for purposes of determining whether the reverse stock split would result in the issuance of a fractional share. Any fractional share resulting from such aggregation of common stock upon the reverse stock split will be rounded up and converted to the nearest whole share of common stock. Other than as a result of the rounding of fractional shares, the reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the company’s equity. The reverse stock split will reduce the number of shares of SolarWinds common stock outstanding from approximately 316 million shares, based on SolarWinds shares outstanding as of July 22, 2021, to approximately 158 million shares. Proportional adjustments will be made to the number of shares of SolarWinds common stock issuable upon exercise or conversion of SolarWinds equity awards, as well as the applicable exercise price. Stockholders with shares in brokerage accounts should direct any questions concerning the reverse stock split to their broker; all other stockholders may direct questions to the company’s transfer agent, American Stock Transfer & Trust Company, at 800.937.5449.