Trade Idea - Buy exactly 99 shares of PKD at ~$20.50, which will be cashed out by company at $30 prior to likely end of this year (still uncertain). $2k investment to net a $1k return in less than 3 months.
"In order to deregister its shares of common stock, the Company must reduce its number of stockholders of record to below 300. To accomplish this, the Board is proposing to amend the Company's amended and restated certificate of incorporation to effect a 1-for-100 reverse stock split, in which holders of less than 100 shares of the Company's common stock would be cashed out at a price of $30.00 per pre-split share in lieu of fractional shares. Such price represents a premium above the common stock's closing price on September 10, 2019."
The board has already approved the transaction, but its contingent on a shareholder vote. The two largest shareholders Varde and Brigade have stated they will vote in support (not sure if they signed a voting agreement, but probably). If they call a special meeting and Varde and Brigade don't pull their support, then this transaction will most likely go through
Please check with your brokerage as some charge a fee…
"The Company intends to treat persons who hold shares of its common stock in "street name," through a bank, broker or other nominee, in the same manner as persons who hold shares of its common stock in their own names. Banks, brokers or other nominees will be instructed to effect the stock splits for their customers holding the Company's common stock in "street name." However, these banks, brokers or other nominees may have different procedures than registered stockholders for processing the transaction and making payments for fractional shares. If you hold shares of the Company's common stock with a bank, broker or other nominee and have any questions in this regard, the Company encourages you to contact your bank, broker or other nominee. "
That’s it. Enjoy
I do not hold a position with the issuer such as employment, directorship, or consultancy. I and/or others I advise hold a material investment in the issuer's securities.