LAFAYETTE, La., May 18, 2016 /PRNewswire/ — PetroQuest Energy, Inc. (the “Company”) (NYSE: PQ) announced today that it will effect a reverse stock split at a ratio of one share of newly issued common stock for each four shares of issued and outstanding common stock (the “Reverse Split”). The purpose of the Reverse Split is to attempt to increase the per share trading price of the Company’s common stock in order to regain compliance with the NYSE’s continued listing standards. The Company anticipates that the Reverse Split will be effective at 5:00 p.m. Eastern Time on May 18, 2016, and that its common stock will commence trading on a split-adjusted basis as of the open of trading on May 19, 2016.
The Company’s stockholders approved a proposal on May 18, 2016 at the Company’s 2016 annual meeting of stockholders giving the Board of Directors of the Company (the “Board”) authority to effect an amendment to the Company’s certificate of incorporation to effect the Reverse Split at exchange ratios ranging from 1-for-2 and 1-for-8, inclusive, with the specific exchange ratio and the timing of effecting the Reverse Split at the discretion of the Board. The Board also approved of the Reverse Split on May 18, 2016 and set the ratio of the Reverse Split at 1-for-4.
Upon effectiveness of the Reverse Split, each four shares of issued and outstanding common stock will be automatically converted into one newly issued and outstanding share of common stock. This will proportionately reduce the total outstanding shares of common stock from approximately 70.5 million shares to approximately 17.6 million shares. Proportionate adjustments will also be made to all shares of common stock issuable under the Company’s equity incentive plans. Proportionate voting rights and other rights of stockholders will not be affected by the Reverse Split, other than as a result of the treatment of fractional shares as described below. The common stock will trade under a new CUSIP number, 716748 306, effective on May 19, 2016. The Company’s trading symbol of “PQ” will not change as a result of the Reverse Split.
No fractional shares will be issued in connection with the Reverse Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of shares not evenly divisible by the ratio of the Reverse Split will automatically be entitled to receive an additional share of common stock. In other words, any fractional share will be rounded up to the nearest whole number.
The Company has chosen its transfer agent, American Stock Transfer & Trust Company, LLC (the “Transfer Agent”), to act as exchange agent for the Reverse Split. Stockholders holding their shares of common stock in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the Reverse Split, and will see the impact of the Reverse Split automatically reflected in their accounts following the effective date. Stockholders holding their shares of common stock in certificated form will receive a letter of instruction from the Transfer Agent shortly after the effective date.
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in Texas, Oklahoma, Louisiana and the shallow waters of the Gulf of Mexico. The Company’s common stock trades on the New York Stock Exchange under the ticker PQ.