California Resources Prefers 1-For-10 Reverse Stock Split

California Resources Corporation CRC disclosed Tuesday that it effected a 1-for-10 reverse stock split at the close of May 31. According to the company, each 10 shares of the Company's common stock outstanding were combined into 1 share of common stock.

California Resources said the reverse stock split affects all issued, as well as outstanding shares of its common stock, and common stock underlying stock options and other stock-based compensation immediately prior to the effectiveness of the reverse stock split. The company added that the reverse stock split proportionally reduced the total outstanding shares to 41 million from about 410 million.

As a result of the reverse stock split, the company indicated its authorized shares of common stock were reduced 200 million from 2.0 billion and authorized preferred stock was reduced to 20 million shares.

The company clarified that no fractional shares would be issued to record holders of CRC stock in connection with the reverse stock split. Any such fractional share of common stock that would otherwise have resulted from the reverse stock split would be converted into cash payments.

Shares of the reversed stock split will start trading from Wednesday.