ST. PAUL, Minn. — Hunting, fishing and marine products retailer Gander Mountain intends to withdraw shares of its stock from the Nasdaq Global Market, according to a recent release from the company. Boating Industry reported on Gander Mountain’s plans to go private in September.
In order to ensure that it will be eligible to deregister its shares of common stock, the company will reduce its number of shareholders to below 300 using a reverse stock split.
The split will be accomplished with an amendment to the company’s articles of incorporation that will effect a 1-for-30,000 reverse stock split of its common stock. The reverse stock split is currently scheduled for Jan. 14. After the reverse stock split, any shareholder holding less than one share will receive a cash payment of $5.15 for each share held prior to the reverse split.
Immediately following the reverse stock split, the company will file a second amendment to its articles of incorporation to effect a 30,000-for-1 forward stock split. As a result, shareholders owning 30,000 or more shares of common stock at the time of the reverse split will retain their current numbers of shares of common stock without change and not receive cash in the transaction.
The funding for the split will be provided by the company’s two largest shareholders, Gratco LLC and Holiday Stationstores Inc.