Golden Minerals (AUMN) Stock Surged After-Hours Before A Reverse Stock Split

Golden Minerals Company (NYSE: AUMN) witnessed a remarkable surge, up 37.53% in after-market trading to $0.152 on Friday. AUMN stock closed the regular session at $0.1111, rising 4.58% or $0.0048, ahead of its upcoming stock split.

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AUMN Gains Shareholder Approval For Reverse Stock Split

In a recent announcement, Golden Minerals (AUMN) confirmed that it’s annual meeting of stockholders, held on May 26, 2023, resulted in the approval of a reverse stock split for the company’s common stock. This strategic move was initiated by the board of directors, who had previously granted approval for a reverse stock split ranging between 1-for-2 shares and 1-for-25 shares. Ultimately, the board has now settled on a reverse stock split ratio of 1-for-25 shares.

Implementation And Impact Of The Reverse Stock Split

To proceed with the reverse stock split, Golden Minerals filed an amendment to its Amended and Restated Certificate of Incorporation, amended, with the Secretary of State of Delaware on May 30, 2023. The reverse stock split is scheduled to take effect on Friday, June 9, 2023, at 12:01 am EDT. Simultaneously, trading of the company’s common stock, adjusted for the split, will commence on the NYSE American and Toronto Stock Exchange under the new CUSIP 381119403 on the same date.

As a result of the reverse stock split, every 25 shares of the company’s issued common stock will be consolidated into one share. This consolidation will significantly reduce the number of outstanding shares, diminishing the count from approximately 178 million shares to approximately 7.1 million shares. Moreover, the number of shares associated with outstanding warrants and restricted stock units will be proportionately adjusted to reflect the reduction caused by the split.

Adjustments To Equity Compensation Plans And Authorized Share Capital

Golden Minerals (AUMN) equity compensation plans, including the recently approved 2023 Equity Incentive Plan, will undergo proportional reductions in the number of shares reserved for issuance. Furthermore, the total authorized share capital outlined in AUMN’s Amended and Restated Certificate of Incorporation, as amended, will be decreased from 350 million to 28 million shares.

Although the reverse stock split will impact the number of shares held by each stockholder, it will not affect their percentage ownership interests, voting rights, or other rights and preferences, except in the case of fractional shares. Any stockholder entitled to a fractional share will receive rounded-up whole shares instead.