Multichannel outdoor gear and apparel merchant Gander Mountain took another step in its intent to go private on Dec. 29 when it announced plans to withdraw its shares of common stock from listing on the Nasdaq Global Market.
In accordance with SEC rules and regulations, Gander Mountain said it will offer shareholders a 1-for-30,000 reverse stock split of its common stock on Jan. 14 to reduce its number of beneficial shareholders to less than 300.
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 company initially announced its intent to go private in September.
Gander Mountain operates 116 Gander Mountain retail stores and sells via catalog and e-commerce channels. The company also owns catalog and e-commerce boating and water sports merchant Overtons.