|
Post by lakon on Feb 9, 2017 15:19:16 GMT -5
Question.. if... IF we get a r/s and lets assume 1:10; I understand that we go to $5.00 and decrease to 50 mil o/s (which is all the same except psychologically) does the float of 30 million get decreased to 3 mi??? saw a post the other day where they stated float would stay at 30 million but I thought that should go down too... thanks. The "float" is the number of shares available for trading. Usually this number is close to, or identical with, the shares issued and outstanding. A reverse split consolidates the number issued and outstanding according to the chosen split ratio. Example: If the final split ratio is set at 5:1 then 100 shares becomes 20 shares and, theoretically, each of the new should be worth about 5 times as much as the old shares.
The number of authorized shares do not change when issued shares are forward split or reverse split unless there is a separate resolution on that matter. Some companies executing a reverse split will also vote to reduce the authorized shares by the same split ratio, but that does not happen automatically. The default is no change.
In this case for MNKD, the number of authorized shares will change. See the filing with the SEC. "Effect on Outstanding Common Stock and Authorized Common Stock The following table illustrates the effects of a 1-for-3, 1-for-5 and 1-for-10 Reverse Split on our outstanding common stock as of February 1, 2017 (without giving effect to any adjustments for factional shares), and corresponding reduction in the number of authorized shares of our common stock: Prior to Reverse Split; 1-for-3; 1-for-5; 1-for-10Common Stock: Outstanding [●] [●] [●] [●] Authorized 700,000,000; 233,333,333; 140,000,000; 70,000,000" It's as simple as reading instead of writing.
|
|