OTCQX:SREMF - Post by User
Comment by
MrAndersonon Jul 19, 2010 12:13am
567 Views
Post# 17278033
RE: RE: RE: Reverse Split - you need to read relea
RE: RE: RE: Reverse Split - you need to read releaKid,
Sorry for the short response - my iphone does not support this entry box on stockhouse yet so all I could edit was the subject field.
I think you have your answer already.
I see this as a very good house cleaning move by the company. It allows anyone holding a partial block ( a block I am assuming is 100 shares) to effectively cash them out.
For example:
If you owned 6550 shares they will be consolidated to become 65.5 shares - you will them be paid out for the .5 of a share - then they will be split back into 6500 shares again. Your payout will be the average price over the last week (say
.52) times 100 so $52 per share. So $52 times .5 shares is about $26 bucks. (Which is the same as 50 shares at
.52 per share).
So that will be pretty nice for all the folks with partial blocks as those can be hard to trade. It would seem they are preparing for something that will be much easier to do if the shares are cleaned up.