WEST PALM BEACH, Fla., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE: OCN), a leading non-bank mortgage servicer and originator, today announced that its Board of Directors approved a reverse stock split of authorized and outstanding shares of the Company’s common stock at a ratio of one-for-15.
As previously disclosed, on July 15, 2020, the Board approved a reverse stock split of the Company’s common stock at a ratio of one-for-25. Based on subsequent developments, including a significant increase in the trading price of the Company’s common stock, on July 28, 2020, Ocwen’s Board and management determined to move forward with a reverse stock split at a ratio of one-for-15.
The reverse stock split is expected to be effective at 5:00 p.m. EST on August 13, 2020 (“the Effective Time”). The Company’s common stock is expected to begin trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at market open on August 14, 2020 under the new CUSIP number: 675746 606. The trading symbol for the Company’s common stock will remain “OCN.”
At the Effective Time, every fifteen (15) shares of issued common stock will be combined and converted into one (1) issued share of common stock. No fractional shares will be issued as a result of the reverse stock split. Once effective, the reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 130.0 million to approximately 8.7 million and will reduce the number of authorized shares from 200.0 million to approximately 13.3 million.
Stockholders who would otherwise be entitled to a fractional share of common stock will be entitled to one (1) whole share in lieu of such fractional share. Holders of the Company’s common stock held in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the reverse stock split. Stockholders of record will be receiving information from the Company’s transfer agent, American Stock Transfer & Trust Company, LLC, regarding their common stock ownership post-split. The reverse stock split will not modify any rights or preferences of the Company’s common stock.
The Company believes a reverse stock split may facilitate investment in its stock by potentially broadening the range of eligible institutional investors, increasing analyst and broker-dealer interest, and decreasing stock price volatility. The Company also believes that increased interest in the Company and its common stock may lead to an increase in the dollar trading volume and liquidity of its common stock. Additionally, as previously described in the Company’s filings with the Securities and Exchange Commission, the Company was notified on April 8, 2020 by the NYSE that the average trading price per share of its common stock was below the NYSE’s continued listing standard rule relating to minimum average share price, and the Company must regain compliance with the NYSE’s share price standard by December 17, 2020. While Ocwen’s share price is currently above the minimum threshold price, by increasing the market price per share of the Company’s common stock, the reverse stock split may assist the Company in regaining and maintaining compliance with the NYSE’s minimum average share price requirement.
The Company sought advisory approval of a reverse stock split at its 2020 Annual Meeting of Shareholders on May 27, 2020 and the reverse stock split was approved by over 97% of the votes cast on the proposal.
About Ocwen Financial Corporation
Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices in the United States and the U.S. Virgin Islands and operations in India and the Philippines, and have been serving our customers since 1988. For additional information, please visit our website (www.ocwen.com).
