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Mega Brands Inc MBLKF



GREY:MBLKF - Post by User

Comment by Nununzacon Nov 05, 2010 3:19pm
437 Views
Post# 17665765

RE: What reverse stock split means to warrants?

RE: What reverse stock split means to warrants?What happens to warrant is simple:

"

An adjustment will be made to the Company’s stock options and warrants based on

the split ratio. Warrant holders do not need to submit their warrants for exchange. The

adjustment will be made automatically. The number of shares of common stock issued subject

to stock options, warrants, or convertible securities will automatically be proportionately

decreased by the split ratio and the exercise price or conversion ratio will automatically be

proportionately increased by the same split ratio. For illustrative purposes, an option to

purchase 300,000 shares at an exercise price of
.40 per share outstanding before the reverse

stock split will become, after a reverse split of 11, an option to purchase 27,273 shares at an

exercise price of $4.40. Options previously granted to management and employees will be

adjusted in the same manner as described above. "

source : https://www.entremed.com/Reverse-Split-FAQs.pdf

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