Service Properties Trust to Reverse Split, Cuts Shares to 129.5M and Sets $0.05 Dividend
SVC•Service Properties Trust will effect a 1-for-5 reverse split on July 7, cutting shares from 647.7 million to 129.5 million and resetting quarterly cash distribution to $0.05 per share. It seeks to boost price from its 52-week low of $1.13, maintain ownership percentages and convert fractional shares to cash.
1. Reverse Split Implementation
On July 7, Service Properties Trust will implement a 1-for-5 reverse stock split, consolidating every five pre-split shares into one post-split share. This corporate action aims to elevate the trading price per share and preserve the company’s Nasdaq listing.
2. Share Count and Listing Effects
The reverse split will reduce outstanding common shares from roughly 647.7 million to approximately 129.5 million. Trading will resume under the same ticker with a new CUSIP, and existing ownership percentages will remain unchanged.
3. Dividend Reset and Fractional Shares
Following the split, the regular quarterly cash distribution will be adjusted to $0.05 per share to reflect the reduced share count. Any fractional shares resulting from the conversion will be paid out in cash to ensure fair treatment of all shareholders.
