What is happening with PTMN?
Portman Ridge Finance Corporation (PTMN) today announced its intention to implement its previously announced 1-for-10 reverse stock split, effective Thursday, August 26, 2021, with trading to begin on a split-adjusted basis when the market opens. Trading in the common shares will continue on the Nasdaq Stock Exchange under the symbol “PTMN”, but the stock will be assigned a new CUSIP number.
The reverse stock split was approved by the shareholders of Portman Ridge at its annual meeting of shareholders held on June 7, 2021. On August 4, 2021, a split ratio of 1 for 10 shares was approved by the board of directors. of the society. PTMN shares fell 1.67% to $ 2.35 on Monday at 11:43 am.
What does this mean for Portman Ridge Finance Corporation?
A reverse stock split is a type of corporate action that consolidates the number of existing shares into fewer, proportionately more valuable shares. The increase in the price per share of a stock is the main reason why companies opt for stock splits. Although they do not affect the value of a company, stock splits are usually the result of a substantial loss in the value of its shares. However, a company might implement a stock split simply to attract large investors or to meet the listing requirements of a stock exchange.
Portman Ridge stated that “no fractional shares will be issued as a result of the stock split. Any shareholder who would have been entitled to receive a fractional share as a result of the stock split will receive cash payments in lieu of this share split. “
In addition, Portman’s certificate of incorporation will also be amended to reduce the authorized number of common shares of the company from 100 million shares to 20 million shares.
PTMN has a Short Term Technical Rank of 83. Find out what that means for you and get the rest of the rankings on PTMN!
Portman Ridge Finance Corp Inc is an undiversified closed-end investment company. The main investment objective of the company is to generate current income and capital appreciation by lending directly to private mid-market companies. It invests in senior secured term loans and mezzanine debt primarily in private mid-market companies, asset management companies, and debt and subordinated securities.