Stock of oil and gas exploration firm Tengasco, Inc. (NYSE: TGC) is seeing a decline in pre-market trades today. Shares of the company were buoyant at $2.73 as of 08:40 a.m. EST, falling -26.49%. The fall came following a yesterday release by the company regarding reverse split going through completion of its merger.
What actually is happening?
This independent company explores for oil and gas deposits throughout the United States, develops those deposits, and produces the fuels products in course of its business operations. Tengasco’s business activities are largely confined to the State of Kansas.
Following the close of the market yesterday, Tengasco announced that it will execute a 12-for-1 reverse stock split of its outstanding common stock in anticipation of closing its previously announced merger with Riley Exploration-Permian, LLC. Some other details of the press release regarding the reverse split and occurance of merger are as follows:
- A reverse stock split is expected to take effect on Monday, March 1, 2021, the first day of trading as new entity.
- The name of Tengasco will be changed to Riley Exploration Permian, Inc. after the merger is closed, which is expected to happen today.
- Under the symbol “REPX” and a new CUSIP number 76665T 102, it will trade on NYSE American on Monday, March 1, on post reverse stock split basis.
- Each twelve shares of common stock outstanding before the reverse stock split will become one share of common stock.
- After the reverse stock split, the par value of the common stock will remain unchanged at $0.001 per share.