Quantum's board of directors has approved a 1-for-8 reverse stock split of its common stock. The company expects the reverse split to become effective following the close of trading on Tuesday 18 April 2017, and its common stock to begin trading on a split-adjusted basis on Wednesday 19 April 2017. Quantum’s common stock will continue to trade on the New York Stock Exchange under the symbol “QTM” but under new CUSIP number 747906501.
When the reverse stock split becomes effective, every eight shares of issued and outstanding Quantum common stock will be combined into one issued and outstanding share of common stock with no change in par value per share. The reverse stock split will reduce the number of shares of the company’s outstanding common stock from approximately 273 million shares to approximately 34 million shares. No fractional shares will be issued as a result of the reverse stock split, and shareholders who otherwise would be entitled to a fractional share will receive a cash payment. Proportionate adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise or vesting of Quantum’s outstanding stock options and restricted stock units.
Additional information on the treatment of fractional shares and other effects of the reverse stock split can be found in Quantum’s definitive proxy statement filed with the Securities and Exchange Commission on Monday 6 March 2017.
Shareholders with certificated shares will soon receive a letter of transmittal from Quantum’s transfer agent with instructions on how to surrender certificates representing pre-split shares. Shareholders should not send in their old stock certificates until they receive a letter of transmittal from the transfer agent. Shareholders with book-entry shares or who hold their shares in “street name” through a bank, broker or other nominee will not need to take