Charah Solutions will effect a one-for-ten reverse stock split of its common stock, par value $0.01 per share, effective at 5:00 p.m. Eastern Time on December 29, 2022. The reverse stock split, which was authorized by its Board of Directors, was approved by Charah Solutions’ stockholders on November 23, 2022. Upon market open on December 30, 2022, Charah Solutions’ common stock will continue trading under the symbol "CHRA" on a split-adjusted basis with a new CUSIP number: 15957P 303.cPursuant to the reverse stock split, common stockholders will automatically receive one common share for every 10 outstanding common shares owned. No fractional shares will be issued in connection with the reverse stock split, and stockholders who would be entitled to fractional shares will receive cash in lieu of fractional shares. The reverse stock split will reduce the number of outstanding shares of Charah Solutions’ common stock from approximately 33,721,705 shares as of December 29, 2022, to approximately 3,372,170 shares outstanding post-split. Correspondingly, the initial trading price of Charah Solutions’ common stock is expected to proportionately increase immediately following the reverse stock split, although there is no guarantee that this will occur. The reverse stock split will uniformly affect all record holders of common stock and will not affect any record holder’s percentage ownership in the Company, except for de minimis changes as a result of the elimination of fractional shares. The reverse stock split will also have a proportionate effect on all stock options, warrants, and conversions outstanding as of December 29, 2022, including the conversion of the outstanding preferred stock. The reverse stock split will not change the number of authorized shares under the Company’s certificate of incorporation, which will continue to consist of 250,000,000 shares, of which 50,000,000 shares are designated as preferred stock and 200,000,000 shares are designated as common stock. The primary purpose of the reverse stock split is to increase the per share market price of the Company’s common stock. Among other things, the Company believes the reverse stock split will also help ensure that the Company maintains compliance with applicable NYSE continued listing standards with respect to the closing price of our common stock. The reduction in the number of issued and outstanding shares of common stock as a result of the reverse stock split is, absent other factors, expected to proportionately increase the market price of our common stock to a level above the current market trading price, although there is no assurance that this will occur. Additionally, there is no assurance that the reverse stock split will allow the Company to maintain compliance with the NYSE’s listing maintenance standard.
Published first on TheFly
