What is going on with PTMN?
Portman Ridge Finance Corporation (PTMN) announced today that it expects to implement its previously announced 1-for-10 reverse stock split effective Thursday, August 26, 2021 with trading to begin on a split-adjusted basis at the market open. Trading in the common stock will continue on the Nasdaq Stock Market under the symbol “PTMN” but the security will be assigned a new CUSIP number.
The reverse stock split was approved by Portman Ridge’s shareholders at its annual stockholders’ meeting held on June 7, 2021. On August 4, 2021, a split ratio of 1-for-10 shares was approved by the company’s Board of Directors. Shares of PTMN fell 1.67% to $2.35 as of Monday at 11:43am.
What does this mean for Portman Ridge Finance Corporation?
A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares. Raising the price per-share of a stock is the primary reason why companies opt for reverse stock splits. Although they do not impact a corporation's value, reverse stock splits are usually a result of its stock having shed substantial value. However, a company could implement a stock split simply to attract big investors, or satisfy a stock exchange's listing requirements.
Portman Ridge stated that, "No fractional shares will be issued as a result of the reverse stock split. Any stockholder who would have been entitled to receive a fractional share as a result of the reverse stock split will receive cash payments in lieu of such fractional shares."
Additionally, the Portman's certificate of incorporation will also be amended to reduce the authorized number of shares of the company's common stock from 100 million shares to 20 million shares.
PTMN has a Short-Term Technical Rank of 83. Find out what this means to you and get the rest of the rankings on PTMN!
Portman Ridge Finance Corp Inc is a non-diversified closed-end investment company. The primary investment objective of the firm is to generate current income and capital appreciation by lending directly to privately-held middle market companies. It invests in senior secured term loans and mezzanine debt primarily in privately-held middle market companies, asset management companies and debt and subordinated securities.