Builder Acts to Shed ‘Odd-Lot’ Shareholders
California Coastal Communities Inc., in a cost-cutting move, will implement a 1-for-100 reverse stock split followed by a 100-for-1 forward stock split to cash out about 11,200 so-called odd-lot shareholders who each hold less than 100 shares.
Shareholders approved the moves Tuesday, the Irvine home builder said. The splits, which will occur after the market closes June 8 and June 21, will save the company about $130,000 a year in mailings and other shareholder-related costs, the company said.
For the record:
12:00 a.m. May 21, 1999 For the Record
Los Angeles Times Friday May 21, 1999 Orange County Edition Business Part C Page 8 Financial Desk 1 inches; 25 words Type of Material: Correction
Stock splits--California Coastal Communities Inc. will implement two stock splits after the stock market closes June 18. A story Wednesday listed incorrect dates for the splits.
The board will decide no later than June 17 whether to repurchase the fractional shares from the cashed-out shareholders or to arrange for the sale of these shares on the open market.
California Coastal’s stock closed Tuesday at $6.25 a share, up 13 cents.
