“We thank our shareholders for their continued support as we work through these challenging times,” said President and CEO Glenn Kellow. “Peabody is advancing further initiatives across our global platform with an intense focus on operational excellence, lean organization, portfolio management and financial strength.”
Peabody stock has dropped from a recent high of $72.71 per share at the end of March 2011 to just below $1.60/share at the time of this announcement. The reverse stock split is expected to become effective at the close of business on September 30, which would result in Peabody’s common stock to begin trading on a split-adjusted basis at market open on October 1. Every 15 shares of common stock will be combined into one share, and the number of outstanding shares will be reduced from approximately 278 million to approximately 19 million.
