DowDuPont Inc. announced on May 23 that its stockholders approved a reverse stock split of the company’s common stock. With approximately two billion eligible votes cast, stockholders voted approximately 97 percent in favor of the reverse stock split.
Stockholders approved the reverse stock split at a ratio of not less than 2-for-5 and not greater than 1-for-3, with an exact ratio as may be determined by the board of directors.
The Board of Directors established a reverse stock split ratio of one new share of DowDuPont common stock for three shares of current DowDuPont common stock. The reverse stock split is expected to occur on June 1, 2019. As such, if the reverse stock split is completed, then stockholders will receive one new share of DowDuPont common stock for every three shares of DowDuPont common stock held on June 1, 2019.
Stockholders will receive cash in lieu of any fractional shares of DowDuPont common stock. The price of each new share of DowDuPont common stock is expected to increase so that a stockholder would have fewer but higher priced shares.
The reverse stock split is intended to increase the market price of DowDuPont’s common stock in connection with the company’s intended distribution of all of the shares of common stock of its wholly owned subsidiary, Corteva, Inc. to the holders of the company’s common stock on a pro rata basis.