NZCH Corp. is planning a reverse split of its common shares.
Under the plan, each 500,000 shares will combine into 1 share. NZCH will simultaneously and accordingly lower its number of authorized shares. The company aims to have fewer than 300 shareholders as a result. No fractional shares will be issued; NZCH will offer a cash payment of 2 cents for each pre-split share to those whose holdings cannot be converted in the reverse split.
With fewer than 300 shareholders following the reverse split, NZCH will be able to terminate its common stock's registration with the SEC and suspend its reporting obligations.
The record date for the transaction is Jan. 2, 2018.