Benzinga | Nov 10, 2020 08:06AM EST

Enservco Corporation Announces 1-for-15 Reverse Stock Split Effective At Close Of Market On November 20, 2020

LONGMONT, Colo., Nov. 10, 2020 (GLOBE NEWSWIRE) -- Enservco Corporation (NYSE:ENSV), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today announced it will implement a 1-for-15 reverse split of its Common Stock that will be effective after the market closes on November 20, 2020.



At the June 26, 2020, Annual Meeting of Stockholders, Enservco's stockholders approved a reverse stock split of not less than 1-for-10 and not greater than 1-for-25 as determined by the Enservco Board. The Enservco Board believes that a 1-for-15 reverse stock split is necessary so that Enservco's common shares will comply with listing requirements of the NYSE American exchange. The Company's shares have been trading below the NYSE's acceptable price threshold.

The reverse split will result in each stockholder owning one share of stock for every 15 shares of stock previously owned. Following the reverse split, and except for adjustments that may result from the treatment of fractional shares that will be rounded up: 1) each stockholder will hold the same percentage of outstanding common stock as such stockholder held immediately prior to the reverse split; and 2) Enservco will have 5,142,507 common shares outstanding compared to 77,137,597 common shares outstanding immediately prior to the reverse split.

The number of authorized shares of Enservco's Common Stock, which is currently 100,000,000 shares, will not be affected by the reverse stock split. The number of authorized shares of Enservco's preferred stock, which is currently 10,000,000 shares, will not be affected by the reverse stock split.

"In addition to the benefit of retaining our NYSE American listing, we believe the reverse split will enable Enservco to attract new investors that may have been prohibited from purchasing our shares due to certain restrictions on trading in lower priced stocks," said Marjorie Hargrave, president of Enservco.