The reverse stock split is expected to take place on November 1, 2022 at 5:01 p.m. Eastern Time (the “Effective Time”). At the Effective Time, every four issued and outstanding shares of the company’s common stock will be converted into one share of common stock. In addition, the number of authorized shares of common stock will be reduced from 700 million to 175 million. The par value of each share of common stock will remain unchanged. At market open on November 2, 2022, the company’s common stock will continue trading on the NYSE under the symbol “TWO” but will be assigned a new CUSIP number. The company’s Board of Directors believes that increasing the market price per share of the company’s common stock through the reverse stock split may broaden the range of potential investors, thereby potentially improving the market for and liquidity of the company’s common stock.
No fractional shares will be issued in connection with the reverse stock split. Instead, each stockholder of record holding fractional shares will be entitled to receive, in lieu of such fractional shares, cash in an amount determined on the basis of the volume weighted average price of the company’s common stock on the NYSE on November 1, 2022. The reverse stock split will apply to all of the company’s authorized and outstanding shares of common stock as of the Effective Time. Stockholders of record will be receiving information from Equiniti Trust Company, the company’s transfer agent, regarding their stock ownership following the reverse stock split and cash in lieu of fractional share payments, if applicable. Stockholders who hold their shares in brokerage accounts are not required to take any action in connection with the reverse stock split.
