Coal news and updates

Miner Arch Coal postpones reverse stock split by one week

Miner Arch Coal said it had to postpone by one week its planned 1-for-10 reverse stock split of common stock, designed to help keep the miner trading on the New York Stock Exchange following the July delisting of Alpha Natural Resources and Walter Energy.

In a statement released late Monday, the St Louis-based miner cited administrative reasons for the delay after last week's announcement on the deal gave a July 27 target for implementation.

"As a result of the postponement, the reverse stock split is expected to take place after market close on August 3, 2015," it said. "It also is expected that Arch's common stock will begin trading on a split-adjusted basis on the New York Stock Exchange at the market open on August 4, 2015."

By reducing the number of Arch's common stock, the stock consolidation is designed to raise the listing price on the exchange tenfold and help bring Arch's stock within the guidelines needed to remain listed and traded on the NYSE.

On May 21, Arch was notified by the NYSE it was in danger of delisting from the exchange after the company's common stock had fallen below $1/share over a period of 30 consecutive trading days.

At the close Monday, Arch's stock was valued at 21 cents/share, up 1 cent on Friday. The shares have dropped almost 94% from its year-to-date high as global coking coal and thermal coal prices fell, demand in the US dropped and US miners were hit hardest by the strong US dollar in export markets.

source: http://www.platts.com