ExpressJet is seeking stockholder approval for a 1:10 reverse stock split for its common shares as part of its efforts to improve liquidity for stockholders and regain trading on the New York Stock Exchange Group platforms. The transaction will also allow ExpressJet to focus on completing negotiations regarding wage and benefit concessions with its unions.
It scheduled a special stockholder meeting in Houston for October 1 to seek approval, after filing a definitive proxy statement with the Securities and Exchange Commission pursuant last week. The deal means that every 10 shares of ExpressJet common stock will be combined into one share of ExpressJet common stock and be traded under a new CUSIP. The reverse stock split affects all shares of common stock and stock options ExpressJet will pay cash in lieu of fractional shares, as required.
After completing the transaction, ExpressJet expects to have 21,691,018 shares outstanding and approximately $68.5 million in debt remaining outstanding, primarily related to its 11.25 percent 2023 convertible notes.