Wheeler Real Estate Investment Trust Inc. announced March 31 the completion of its 1-for-8 reverse stock split wherein shareholders received 1 common share for every 8 shares they owned.
As a result of the split, the REIT's roughly 68,700,000 shares were adjusted to approximately 8,587,500 shares, and the number of shares the company is authorized to issue was lowered to 18,750,000 shares from 150,000,000 shares.
The split also reduced limited partnership common units in the company's operating partnership to approximately 762,500 units from around 6,100,000 units.
No fractional shares and fractional common units were issued in the reverse stock split. Holders of fractional shares will be paid in cash using net proceeds from the sale of an aggregate of the fractional shares, and holders of fractional common units will also be paid in cash.
Starting April 3, Wheeler's common stock will trade on a reverse split-adjusted basis on Nasdaq under the same WHLR symbol, with a new CUSIP of 963025705.
Wheeler's common stock par value remained at 1 cent after the stock split.
The split effectively increased the exercise price to purchase one share of common stock to $44.00 apiece from $5.50 apiece. The conversion price of Wheeler's series B convertible preferred stock shot up to $40.00 per share of common stock and 1 share of series B stock will be convertible into 0.625 share of common stock. Further, the split raised the conversion price of the company's series D cumulative convertible preferred stock to $16.96 apiece and 1 share of the series D stock will be convertible into 1.474 shares of common stock.