Globus Maritime, an owner of five dry bulk vessels, has made a drastic move in an apparent effort to ensure that it stays listed on the Nasdaq Capital Market.
The New York-listed owner of one panamax and four supramaxes has gone in for a 1-for-100 reverse stock split, reducing its number of outstanding shares to 1.76m from 176m.
Its preferred shares will fall to 300 units from 30,000, the company said.
The Athanasios Feidakis-led owner's stock price as a result will increase by 100 times at the start of Tuesday's trading on Wall Street.
Its shares are well below the Nasdaq stock market's minimum compliance requirement of $1 per share, closing at $0.13 on Monday.
Globus Maritime's board of directors approved the reverse stock split on 24 September. The company did not say why it has carried out the reverse stock split.
The Athens-based company said no fractional shares for common stock or preferred shares will be issued after the split.
Shareholders who would otherwise hold a fractional share of the company's common stock will receive a cash payment multiplied by Monday's closing price.
The reverse stock split will not result in any fractional preferred shares.
At a loss
Late last month, Globus Maritime reported a $4.2m deficit for the second quarter, compared with a $3m loss for the same period last year. Loss per share came in at $0.39, versus $0.74 a year ago.
Second-quarter revenue totalled $2.3m, down from $3.4m a year earlier.
Losses also widened for the first half, falling to $13.2m versus $3.47m for the first six months of last year.
Revenue for the first half of 2020 came in at $4.95m versus $6.54m for last year's first half.
