Doral Energy Announces Amendment to Reverse Share Splitadmin
Doral Energy Corp., an oil and gas production and exploitation company, announced that its Board of Directors has amended the 1-for-25 reverse split of Doral’s common stock to a 1-for-6.25 reverse split.
Commenting on the change, Doral’s Chief Executive Officer, Everett Willard (“Will”) Gray, II, stated, “After announcing our earlier reverse split, the Board of Directors realized that the small number of shares that would be left outstanding could result in a lack of liquidity for Doral’s existing stockholders. We believe that a 1-for-6.25 split will still allow us to meet our goal of creating a more attractive capital structure for potential new investors, while balancing our existing stockholders’ desires for market liquidity. This will allow Doral’s management to execute its organic and M&A growth strategies for 2009.”
The 1-for-6.25 reverse split will result in Doral having approximately 17,174,008 outstanding shares of common stock. Doral’s Board of Directors believes this share capitalization will be effective both in helping the Company raise additional equity capital from institutional investors and in allowing for liquidity for its stockholders. The reverse split is expected to become effective on January 12, 2009.
Mr. Gray concluded by saying, “Success in raising growth capital, combined with sufficient liquidity in our stock, will be instrumental in helping Doral achieve its longer term goal of listing its shares on a more senior exchange such as NYSE Alternext US (formerly AMEX), thereby creating more value for our stockholders.”