The ailing dry bulk shipping industry has continued to struggle for the last couple years, as shipping and commodity demand has continued to decline. Oil’s lackluster global demand has been one of the main factors in the demise of global shipping. Unfortunately, with the global oil supply currently near record levels and demand continually failing to pick up, the dry bulk shipping industry will continue to feel the pain. While an overall rebound could be in the works thanks to iron ore’s strong demand, oil’s fundamentals still presents a roadblock to the industry.
Paragon Shipping, Inc. (OTCQB: PRGND) operates as a global shipping and transportation service provider. The Greece-based dry bulk shipping company made headlines on Monday, July 31, 2017, after the company filed a 6-K detailing of a 1-for-100 reverse stock split. Here is part of the 6-K filing, detailing of the reverse stock split:
Paragon Shipping, Inc. 6-K Filing:
On July 28, 2017, Paragon Shipping, Inc. (the “Company”) filed an amendment to its Amended and Restated Articles of Incorporation to effectuate a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share. A copy of the amendment is attached hereto as Exhibit 3.01.
As previously disclosed on a Form 6-K filed on June 15, 2017, on June 15, 2017, the shareholders of the Company authorized the Company’s Board of Directors (the “Board of Directors”) to effect one or more reverse splits of the Company’s issued and outstanding common stock at a ratio within the range from 1-for-2 up to 1-for-1,000, at any time prior to June 15, 2018, at the discretion of the Board of Directors.
On July 11, 2017, the Board of Directors authorized a reverse stock split at a ratio of 1-for-100 (the “Reverse Split”) which became effective with the Republic of the Marshall Islands at 12:01 a.m. New York time (5:01 p.m. Marshall Islands time) on July 31, 2017. The Reverse Split will become effective with the OTC Markets at the open of business on July 31, 2017. As a result of the Reverse Split, every 100 shares of the Company’s pre-reverse split common stock will be combined and reclassified into one share of the Company’s common stock. No fractional shares of common stock will be issued as a result of the Reverse Split. Stockholders who otherwise would be entitled to a fractional share shall receive the next higher number of whole shares.
The par value and other terms of Company’s common stock were not affected by the reverse stock split. The Company’s post-reverse split common shares have a new CUSIP number, Y6728Q202. The Company’s transfer agent, Computershare Trust Company Inc. is acting as exchange agent for the Reverse Split and will send instructions to shareholders of record regarding the exchange of certificates for common stock.
Link to the full 6-K filing: Click Here