TSXV:RBI.H - Post by User
Comment by
Cindylikesmoneyon May 01, 2018 11:44am
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Post# 27964606
RE:RE:Please look things up before you write garbage
RE:RE:Please look things up before you write garbage A reverse split does not effect the market cap. If this has a $3 million market cap with no deal yet and 80 million shares then the reverse split of 4 for 1 just means the stock is trading at 12 cents with only 20 million shares out. The new deal would likely bring in added value of $25 million but would also mean issuing 50 million shares at 10 cents in value. So now the stock under this math would have 70 million shares out and a rough value of $30 million dollars so 40-45 cents a share after the dust settles. Roughly 12 cents value based on the old pre roll back which is a 400% realized gain for current holders if a deal comes in and you bought at 3 cents. There is no guarantee a new deal will come in though.