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What happens to my Two Harbors common stock as a result of the Reverse Stock Split?

Q:

What happens to my Two Harbors common stock as a result of the Reverse Stock Split?

A:

Following the Reverse Stock Split, you will own one-half of the number of shares that you held prior to the Reverse Stock Split, although the shares you own following the Reverse Stock Split will continue to represent that same percentage of the total number of outstanding shares of Two Harbors common stock.  Accordingly, the proportionate ownership of Two Harbors will not change as a result of the Reverse Stock Split.  

For example:

You own 1,000 shares of Company X, which has 1,000,000 shares of common stock outstanding (or a 0.10% percentage ownership in the company).

After a 1-for-2 reverse stock split, you own 500 shares of Company X, which now has 500,000 shares of common stock outstanding (or a 0.10% percentage ownership in the company).

Before and after the reverse stock split, you had the same 0.10% ownership percentage of Company X.  

Note that fractional shares will not be issued.  See the question titled “How are fractional shares of Two Harbors common stock being treated in the Reverse Stock Split?”