This is kind of disturbing. From CHRB's 10:1 split proposal:
"The principal effect of the Reverse Stock Split will be to decrease
the number of outstanding shares of Common Stock from 82,833,414 (as of December 13, 1996) to approximately 8,283,341 shares (assuming that no additional shares have been issued or retired subsequent to December 13, 1996)." "Consummation of the Reverse Stock Split will not alter the number of authorized shares of the Company's Common Stock, which will remain at 200,000,000, of which approximately 191,716,659 shares of Common Stock would constitute authorized but unissued and unreserved shares."
Basically what bothers me is not the split itself but that they did not reduce the # of authorized shares by 1/10 as well. At least when there is 82M shares out and 200M cap they can only dilute the stock by a factor of ~2.4. With only 8.2M shares out and a 200M they could dilute the stock 24x!!! I guess it may not be that big a deal, I guess even if they dilute by 2x we're all sunk. Any thoughts? |
