Trio Petroleum Corp (NYSE:TPET) shares fell 26.90% in Tuesday’s after-hours trading after the company announced a 1-for-9 reverse stock split intended to protect its NYSE American listing.
The stock closed Tuesday’s regular session up 1.84% at $0.25 before falling 26.90% to $0.19 in after-hours trading.
Trio Petroleum is an independent oil and gas company focused on the acquisition, development and optimization of oil and gas properties in North America. Its strategy includes acquiring producing assets, optimizing existing production and identifying opportunities for additional production through drilling and other development activities.
Trio Announces 1-for-9 Reverse Stock Split
Trio said the reverse stock split will combine every nine shares of its outstanding common stock into one share.
The company expects the reverse stock split to become effective at 4:30 p.m. EDT on Aug. 28, with shares expected to begin trading on a post-split basis at the market open on Aug. 31 under the same TPET ticker and a new CUSIP number, 89669L306.
The reverse split was approved by Trio’s board and falls within the range authorized by shareholders at the company’s annual meeting on May 21. Stockholders will retain the same percentage ownership of the company immediately after the split, subject to adjustments for fractional shares.
Listing Protection
Trio said the reverse split is being undertaken to protect its NYSE American listing.
"We believe it is important to be proactive rather than reactive," said Robin Ross, chairman and CEO of Trio Petroleum. "Our objective is to protect Trio’s NYSE American listing in light of potential changes to exchange listing rules."
Ross said the reverse split does not represent a change in the company’s fundamental business strategy.
Acquisition and Drilling Strategy
Trio said it continues to evaluate oil and gas acquisition opportunities in the U.S. and Canada, focusing on producing assets that can generate near-term cash flow and provide opportunities for additional production growth.
The company is also expanding its strategy to include identifying and developing new drilling opportunities. Trio said it intends to pursue acquisitions while building the expertise needed to develop new production internally.
As of April 30, Trio had approximately $22 million in cash. Since then, the company said it raised approximately $1.7 million through its at-the-market facility.
Price Action
Trio Petroleum has a market capitalization of approximately $11.24 million.
The stock has a 52-week high of $2.50 and a 52-week low of $0.22. TPET shares were down 76.01% over the past year.
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