Danaos Corp. (DAC) said the board of directors has opted for a 1-for-14 reverse stock split after stockholders March 5 approved the measure that will allow the shares to comply with the New York Stock Exchange’s minimum share price requirements.

The reverse stock split will take effect by May 2 and will reduce the number of outstanding shares from about 213.4 million shares to some 15.2 million, the company said Monday.

No fractional shares will be issued in connection with the reverse stock split as stockholders will in this case receive cash payment at a price equal to the fraction held multiplied by the closing price on May 1.

On Dec. 31, management was notified by the NYSE that the 30 trading-day price range of the shares had fallen below the requirement of at least $1 per share.

In 2019, the shares were trading above the $1 mark for three sessions only between Feb. 27 and March 1. They were down slightly over 2% in premarket activity Monday, at $0.90, from the Thursday closing price of $0.92.

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