In a move to boost its stock price, Henrico County-based Dynex Capital Inc. is planning a one-for-three reverse stock split.
The company, a real estate investment trust, announced late Thursday that its board of directors had approved the reverse split.
The move is planned to take effect after the market closes on June 20, with the adjusted shares of its common stock starting trading on the New York Stock Exchange at the open of the market on June 21.
“The company is implementing the reverse stock split with the objective of making the common stock more attractive to a broader range of investors as well as a more cost-effective investment, which it believes will enhance the liquidity of the holders of the company’s common stock,” the company said in a statement.
“The board also recognized that our shareholders and potential shareholders have share price minimums and after the reverse stock split the company’s shares are expected to trade above those minimums.”
Dynex shares closed Thursday at $5.66 on the New York Stock Exchange. The stock has traded between $5.41 and $6.82 per share over the last 12 months.
The company will have about 24.6 million shares of common stock outstanding after the reverse split, and the number of shares of the company’s common stock authorized for issuance will be decreased from 200 million to 90 million.