YRC Worldwide (YRCW) merged with a wholly-owned subsidiary named YRC Merger Sub, and increased its authorized share count to a whopping 10 billion from 48 million. Per the announcement the company made after the market closed:
“In connection with the merger, the certificate of incorporation of YRC Worldwide was amended and restated to, among other things, increase the number of authorized common shares to 10 billion. This stockholder approval caused the number of outstanding common shares to increase to approximately 1.9 billion as compared to the previous level of approximately 48 million, as the approximately five million Series B convertible preferred shares issued on July 22, 2011 automatically converted to common shares. In addition, convertible notes issued on July 22, 2011 have conversion rights for another approximately 4.1 billion common shares, of which approximately 2.3 billion common shares may be issued upon conversion at any time following the merger and an additional approximately 1.8 billion common shares may be issued upon conversion after July 22, 2013.”
Nasdaq also said the company is subject to delisting because it traded under $1 for more than 30 days, but YRC says it is appealing the delisting.
YRC shares fell 8.7% after the close to 6.3 cents.
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