Wheeler Real Estate Investment Trust Sets 1-for-6 Reverse Stock Split, Effective Oct. 29

Wheeler Real Estate Investment Trust (Nasdaq: WHLR) will carry out a one-for-six reverse stock split effective Oct. 29, the company said in an 8-K filed Monday, Oct. 26.

The split takes effect at 5:00 p.m. Eastern Time on Oct. 29. Shares will begin trading on a split-adjusted basis at the market open on Oct. 30 on The Nasdaq Capital Market.

The trading symbol, WHLR, will not change. The common stock will trade under a new CUSIP number, 963025713.

Share count and fractional shares

As of Oct. 26, the company had 5,872,051 shares of common stock outstanding. It expects about 978,675 shares to be outstanding after the split.

No fractional shares will be issued. Holders who would otherwise receive a fraction of a share will instead receive a cash payment equal to that fraction multiplied by the split-adjusted closing price of the common stock on Nasdaq on Oct. 29, without interest.

Par value and convertible securities

A second charter amendment, effective at 5:01 p.m. Eastern Time on Oct. 29, will reduce the par value of the common stock from $0.06 per share, the post-split figure, to $0.01 per share.

The split applies to all outstanding common shares and will not change any holder's relative ownership, apart from small changes from cash paid in lieu of fractions. The number of authorized common shares will not change.

The conversion rate of the company's 7.00% subordinated convertible notes due 2031 will fall from about 9.17 shares to about 1.53 shares per $25.00 principal amount. Conversion prices for the Series B and Series D preferred stock will rise in proportion.