Ascena Retail Group, Inc. Announces One-for-Twenty Reverse Stock Split
December 19 2019 - 6:30AM
ascena retail group, inc. (Nasdaq:ASNA) (the “Company”) today
announced that the Company’s board of directors has approved a
reverse stock split of the Company’s common stock, at a ratio of
1-for-20, and a corresponding reduction in the number of the
Company’s authorized shares of common stock, following the approval
of the reverse stock split by the Company’s stockholders at the
Company’s annual meeting of stockholders held on December 10, 2019.
The reverse stock split became effective at 5:30 p.m. on
December 18, 2019. Beginning with the opening of trading on
December 19, 2019, the Company’s common stock will trade on the The
Nasdaq Global Select Market (“Nasdaq”) on a split-adjusted basis
under a new CUSIP number, 04351G 200. The Company’s trading symbol
will continue to be “ASNA.”
The objective of the reverse stock split is to enable the
Company to regain compliance with the Nasdaq minimum share price
continued listing rule as required by Nasdaq Listing Rule
5450(a)(1) and maintain its listing on Nasdaq. The Company can
regain compliance with the Nasdaq minimum share price
requirement by maintaining a closing bid price of $1.00 per share
for a minimum of ten consecutive business days prior to January 27,
2020.
The reverse stock split reduced the number of shares of common
stock issued and outstanding from approximately 199,444,436 to
approximately 9,972,221. The authorized number of shares of common
stock has been reduced by a corresponding ratio to 18 million. The
reverse stock split affects all issued and outstanding shares of
the Company’s common stock and shares held in treasury, as well as
the number of shares of common stock available for issuance under
the Company’s stock incentive plans and outstanding awards subject
to those plans. The reverse stock split affects all stockholders
uniformly and will not alter any stockholder’s percentage interest
in the Company’s common stock, except for adjustments that may
result from the treatment of fractional shares as described
below.
No fractional shares will be issued as a result of the reverse
stock split. In lieu thereof, the Company’s transfer agent
will aggregate all fractional shares and sell them as soon as
practicable after the effective time of the reverse stock split at
the then-prevailing prices on the open market. After the transfer
agent’s completion of such sale, stockholders who would have
been entitled to a fractional share as a result of the reverse
stock split will instead receive a cash payment from the
transfer agent in an amount equal to their respective pro rata
share of the total proceeds of that sale, net of any brokerage
costs incurred by the transfer agent to sell such fractional
shares.
Forward-Looking Statements
Certain statements made within this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially. Forward-looking
statements are statements related to future, not past, events, and
often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," "estimate,"
"forecast," "target," "preliminary," or "range," and include,
without limitation, statements about the effects and impact of the
reverse stock split. The risks and uncertainties include, but are
not limited to: potential volatility in the price of the Company’s
common stock following the reverse stock split, the Company's
ability to comply with the continued listing criteria of Nasdaq,
including listing criteria based upon the Company’s market
capitalization, and risks arising from the potential suspension of
trading of the Company's common stock on that exchange. These and
other factors that could cause results to differ materially from
those described in the forward-looking statements contained in this
press release can be found in the Company’s Annual Report on Form
10-K and in other filings with the SEC. Refer to the Company’s most
recent SEC filings for any updates concerning these and other risks
and uncertainties that may affect the Company’s operations and
performance. Undue reliance should not be placed on forward-looking
statements, which are only current as of the date they are made.
The Company assumes no obligation to update or revise its
forward-looking statements, except as may be required by applicable
law.
About ascena retail group, inc.
ascena retail group, inc. (Nasdaq: ASNA) is a national specialty
retailer offering apparel, shoes, and accessories for women under
the Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus
Fashion (Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice). ascena retail group, inc. through its retail
brands operates ecommerce websites and approximately 3,400 stores
throughout the United States, Canada and Puerto Rico.
For more information about ascena retail group, inc. visit:
ascenaretail.com, AnnTaylor.com, factory.anntaylor.com, LOFT.com,
outlet.loft.com, louandgrey.com, lanebryant.com, Catherines.com,
Dressbarn.com, and shopjustice.com.
CONTACT:
For investors:
ICR, Inc.
Jean Fontana
Managing Director
(646) 277-1214
Jean.Fontana@icrinc.com
Jessica Schmidt
Senior Vice President
(646) 677-1806
Jessica.Schmidt@icrinc.com
For media:
ascena retail group, inc.
Shawn Buchanan
Corporate Communications
(212) 541-3418
shawn_buchanan@anninc.com
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