Scorpio Bulkers Announces Sale Of 5 Vessels, Shares Split 1-For-12

Scorpio Bulkers Inc SALT announced on Wednesday it has entered into agreements with third parties to sell 3 of its Capesize dry bulk vessels and 2 of its newbuilding Capesize dry bulk vessels that are under construction for approximately $167 million.

Scorpio Bulkers also announced on Wednesday that its board of directors authorized a 1-for-12 reverse stock split of the company's common stock.

Following the split, the number of outstanding shares are expected to fall to 28.7 million from a prior 344.2 million.

Scorpio Bulkers noted that the reverse stock split was intended to increase the market price of its common shares. The company received notice on December 17 from the NYSE that it was no longer in compliance with the NYSE's continued listing standards as the average closing share price of its shares over a 30-day period had fallen below the minimum requirement of $1.00 per share.

Shares of Scorpio Bulkers had lost nearly 65 percent since the start of 2015.