LAKE OSWEGO, Ore.–(PRNewswire)–West Coast Bancorp (NASDAQ: WCBO) today announced that the Company will implement effective as of the close of business on May 19, 2011, a 1-for-5 reverse stock split of West Coast Bancorp’s common stock that was approved by shareholders at the Company’s annual shareholders meeting held April 26, 2011.
Robert D. Sznewajs, President & CEO, said, “The reverse stock split is an important step in making the Company’s stock more attractive to institutional investors and reducing administrative costs related to the large number of shares issued and outstanding.”
Under the approved proposal, West Coast Bancorp shareholders will receive 1 new share of common stock for every 5 shares of stock they own prior to the reverse stock split. Trading of the Company’s common stock on the NASDAQ Global Select Market on a split-adjusted basis is expected to begin at the open of trading on May 20, 2011. West Coast Bancorp’s shares will continue to trade on the NASDAQ Global Select Market under the symbol “WCBO” with the letter “D” added to the end of the trading symbol for a period of 20 trading days to indicate that the reverse stock split has occurred.
As a result of the reverse stock split, every 5 shares of the Company’s common stock issued and outstanding at the end of the effective date of May 19, 2011, will be combined and reclassified into 1 share of common stock. West Coast Bancorp will not issue fractional shares of common stock. In lieu of fractional shares resulting from the reverse stock split, shareholders will receive cash. Cash payments for fractional shares will be determined on the basis of the stock’s average closing price on the NASDAQ Global Select Market for the five trading days immediately preceding May 19, 2011, as adjusted for the reverse split.
The reverse stock split will reduce the number of shares of outstanding common stock from approximately 96.4 million shares to approximately 19.3 million shares. The number of authorized shares of common stock will be reduced from 250 million to 50 million. Proportional adjustments will also be made to the conversion or exercise rights under the Company’s outstanding preferred stock, stock options and warrants.
Stockholders with certificated shares will be required to exchange their stock certificates for new stock certificates representing the appropriate number of shares of common stock resulting from the reverse stock split. The Company’s exchange and Transfer Agent, Wells Fargo Shareowner Services, will mail instructions to registered shareholders on how to complete the exchange.