Shareholders of Chesapeake Energy Corp. voted on Monday to give the green light on the company's proposal to conduct a reverse stock split of 1-for-200.

The company revealed after markets closed the same day that it would merge 200 shares into one, which will take effect before the opening bell on April 15.

The reverse split will increase the company's stock, quoted under the ticker symbol CHK on the New York Stock Exchange, to over $30 a share and reduce its total number of registered common shares from 3 billion to 22.5 million.

The number of outstanding shares in Chesapeake will be reduced to around 9,784 million shares, the firm said. Chesapeake's stock dropped by 1.4 percent in the extended Monday session after wrapping up the day's session 5.9 percent down.

According to the company's annual regulatory filing in February, investors holding more than $1 billion in Chesapeake debt have the right to demand that the company repurchase their notes if shares are withdrawn from the New York Stock Exchange

Nearly 76 percent of the total votes cast at Chesapeake's meeting were in favor of the reverse stock split, which the board eventually agreed would be set at 1:200, while the company said 23 percent voted against.

The remainder were abstentions. After the split in reverse stock is effective Tuesday, Chesapeake's 22.5 million shares will trade on the NYSE.

The reverse stock split is designed to raise the per share selling price of the Company's common shares, among other items, to meet the $1.00 minimum offering price threshold for continued listing on the NYSE.

Due to the reverse stock split, each 200 pre-split shares of outstanding common stock would automatically be merged into one outstanding and issued share of common stock without any action on the part of the shareholder.

As a result of any inverse stock split, no fractional shares of common stock will be issued. Rather, instead of any fractional shares to which a registered shareholder would otherwise be entitled as a result of the inverse share split, the corporation must pay cash (without interest) to the shareholder.

Meanwhile, stocks of the company were down 80 percent in 90 days, 95 percent in four quarters, and a whopping 99 percent in five years. Analysts are not taking a shine to Chesapeake, as some would expect.

Its share price fell from more than $62 in 2008 to a measly $0.17 in early April this year. But $0.17 is still too high of a price target for CHK stock for Bank of America.