Two Harbors Investment Corp. provided additional information regarding its anticipated special dividend of Granite Point Mortgage Trust Inc. common shares and the 1-for-2 reverse stock split of Two Harbors common shares.
The company intends to distribute the 33,071,000 Granite Point common shares it acquired in connection with the contribution of its commercial real estate portfolio to Granite Point. The special dividend will be distributed Nov. 1, on a pro rata basis, to Two Harbors Investment's common shareholders of record as of Oct. 20. The reverse stock split is also expected to take place Nov. 1.
The New York Stock Exchange informed the company that, in connection with the special dividend and reverse stock split, certain additional trading markets in Two Harbors and Granite Point common shares will commence Oct. 19 and continue through and including Nov. 1.
Two Harbors anticipates that starting Oct. 19 and continuing up to and including Nov. 1, there will be two markets in its common shares: a regular way market and an ex-distribution market. The two markets will represent the value of Two Harbors common shares following the special dividend and reverse stock split.
Two Harbors common shares that trade on the regular way market will trade with an entitlement to receive Granite Point common shares in the special dividend. Shares that trade on the ex-distribution market will trade without an entitlement to receive Granite Point common shares in the special dividend.