CVR Partners LP, Sugar Land, Texas, on Nov. 2 announced that the Board of Directors of its general partner had approved a 1-for-10 reverse split of the partnership’s common units to be effective at 5:00 p.m. Eastern Time on Nov. 23, 2020. Ten common units would be converted into one common unit. Following the reverse split, the number of common units outstanding would decrease from approximately 111 million common units to approximately 11 million common units.
The partnership’s common units are expected to begin trading on a split-adjusted basis when markets open on Nov. 24, 2020, under the symbol “UAN” and a new CUSIP number.
CVR believes the move will bring it into compliance with New York Stock Exchange listing requirements. On April 20, 2020, the average closing price of the partnership’s common units over a 30 consecutive trading-day period fell below $1.00 per common unit, resulting in noncompliance with the continued listing standards. CVR received written notification of this noncompliance from the NYSE on April 22, 2020 (GM May 8, p. 33), and currently has until Jan. 1, 2021 to comply.