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Posted On: 03/22/2023 10:08:35 AM
Post# of 32688
Re: Poseidon360 #28898
This should apply for any company that does a reverse stock split.
FREQUENTLY ASKED QUESTIONS
FROM STOCKHOLDERS REGARDING REVERSE STOCK SPLIT
" Question 10. What is the impact of the reverse stock split on stock options and
warrants?
Answer. 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 $0.40 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."
FREQUENTLY ASKED QUESTIONS
FROM STOCKHOLDERS REGARDING REVERSE STOCK SPLIT
" Question 10. What is the impact of the reverse stock split on stock options and
warrants?
Answer. 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 $0.40 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."
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