Oil and gas producer California Resources Corp. on Wednesday announced that after the market closed on Tuesday, a 1-for-10 reverse stock split went into effect, where each 10 shares of the Chatsworth company’s outstanding common stock now equal 1 share of common stock.
The reverse stock split reduced the number of outstanding shares from approximately 410 million to 41 million. Authorized shares of common stock went from 2 billion to 200 million, while authorized preferred stock decreased to 20 million shares.
Additionally, the company will not issue fractional shares to stockholders as part of the reverse stock split but will convert the shares into cash payments, which will be distributed by the transfer agent, American Stock Transfer & Trust Co.
California Resources Corp. shares closed up 38 cents, or less than 3 percent, to $15.58 on the New York Stock Exchange.