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Cybernet Data Systems Inc.

General Electric Completes Reverse Stock Split

Strategic Insights

— 2 min read

General Electric Company, a multinational conglomerate, has successfully completed its previously announced reverse stock split at a ratio of 1-for-8, reducing the number of outstanding shares from approximately 8.8 billion to approximately 1.1 billion. As a result, the par value of common stock has been reduced from $0.06 to $0.01 per share.

The reverse stock split was authorized by GE shareholders at the annual meeting of shareholders on May 4, 2021, and was implemented through an amendment to the company's certificate of incorporation, which was accepted for filing by the New York Department of State on July 30, 2021. GE common stock will begin trading on a split-adjusted basis when the New York Stock Exchange opens on August 2, 2021, under the symbol "GE" with a new CUSIP number (369604 301) and on the London Stock Exchange under the symbol "GEC" with a new ISIN number (US3696043013).

Key Takeaways:

  • The reverse stock split reduced the number of outstanding shares from approximately 8.8 billion to approximately 1.1 billion.
  • The par value of common stock has been reduced from $0.06 to $0.01 per share.
  • Outstanding GE equity-based awards and shares or share units under GE benefit plans were proportionately adjusted.
  • No fractional shares were issued in connection with the reverse stock split.
  • Shareholders holding their shares of common stock in certificated form with an aggregate value of more than $2,000 as part or all of an account holding will receive a letter of transmittal from EQ, the exchange agent for the reverse stock split.
  • Additional information concerning the reverse stock split can be found in GE's definitive proxy statement filed with the Securities and Exchange Commission on March 22, 2021 and on GE's Investor Relations website, https://www.ge.com/investor-relations.

Statistics:

  • 1-for-8 reverse stock split ratio.
  • Reduction in outstanding shares from approximately 8.8 billion to approximately 1.1 billion.
  • Reduction in par value of common stock from $0.06 to $0.01 per share.
  • Proportionate adjustment of outstanding GE equity-based awards and shares or share units under GE benefit plans.
  • No fractional shares issued in connection with the reverse stock split.
  • Approximately $1.7 billion reduction in stated capital.

Sources:

  • General Electric Company, Certificate of Amendment to Certificate of Incorporation, Exhibit 3.1 (filed on July 30, 2021).
  • General Electric Company, Press Release, announcing the effectiveness of the reverse stock split, Exhibit 99.1 (filed on July 30, 2021).
  • Comtex News Network, Inc., SmarTrend Alert, indicating a DOWNTREND on 05-14-2012 for GE @ $18.70.

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