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Investors

What happens if I sold my Two Harbors common stock prior to or on the Dividend Date?

Q:

What happens if I sold my Two Harbors common stock prior to or on the Dividend Date?

A:

Beginning October 19, 2017 and continuing up to and including the Dividend Date, there were two markets for trading in Two Harbors common stock: (1) a “regular way” trading market (NYSE: TWO); and (2) an “ex-distribution” market (NYSE: TWO WI) that will represent the value of Two Harbors common stock following the Stock Dividend and Reverse Stock Split. Shares of Two Harbors common stock that trade on the regular way market will trade with an entitlement to receive shares of Granite Point common stock in the Stock Dividend. Shares that trade on the ex-distribution market traded without an entitlement to receive shares of Granite Point common stock in the Stock Dividend. As a result, if you are a stockholder of record on the Record Date and sold your shares of Two Harbors common stock in the regular way market prior to or on the Dividend Date, you also sold your entitlement to receive shares of Granite Point common stock in the Stock Dividend; if you sold those shares in the ex-distribution market prior to or on the Dividend Date, you would have still received the shares of Granite Point common stock that you would have otherwise been entitled to receive in the Stock Dividend.  Beginning on November 2, 2017 (the business day following the Dividend Date), the regular way market for Two Harbors will begin trading “ex” or without the entitlement to receive Granite Point common stock.

HOLDERS OF TWO HARBORS COMMON STOCK ARE ENCOURAGED TO CONSULT THEIR BROKER OR FINANCIAL ADVISOR REGARDING THE SPECIFIC IMPLICATIONS OF TRADING IN THE COMMON STOCK OF EITHER TWO HARBORS OR GRANITE POINT PRIOR TO OR ON THE DIVIDEND DATE.