Central Pacific Financial Corp,’s previously announced 1-for-20 reverse stock split went into effect at the close of trading today and its shares will be reflected at the higher price beginning with tomorrow’s trading.
Shares of Central Pacific Bank’s parent closed down 2 cents today at $1.51, or a split-adjusted $30.20, on the New York Stock Exchange.
The reverse stock split was approved by the state Department of Commerce and Consumer Affairs and was a closing condition of Central Pacific’s $325 million private placement and proposed exchange of Central Pacific preferred stock held by the U.S. Treasury, and accrued dividends, into shares of the bank’s common stock.
The reverse stock split was approved by Central Pacific’s shareholders at a shareholders meeting on May 24.
No fractional shares will be issued as a result of the reverse stock split. For each holder of common stock, the number of shares held will be divided by 20 and, if the resulting number is not a whole number, then the number will be rounded up to the next nearest whole number.