Current Price – $0.125
Post Reverse Split Price – $15
Upside – $15
Expiration Date – TBD
This idea was shared by Thinley.
This is a straightforward $15-lying-on-a-sidewalk type of situation. Sitestar is carrying out 125:1 reverse stock split and each fractional share will be rounded up to the nearest new share:
No fractional shares will be issued, and no cash or other consideration will be paid. Rather, any fraction of a share of Common Stock that otherwise would result from the Reverse Stock Split will be rounded up to the next whole share of Common Stock. That is, stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre- Reverse Stock Split shares of the Company’s Common Stock not evenly divisible by one hundred twenty five (125), will have the number of post-Reverse Stock Split shares of the Company’s Common Stock to which they are entitled rounded up to the next whole number of shares of the Company’s Common Stock.
Thus by buying one pre-reverse share investors are expected to get one post reverse share, which theoretically should trade at 125x current prices. Important note - beware of transaction costs of buying and selling shares as these might eat the whole upside.
Timing is not certain yet - required documents have been submitted to FINRA and now company is waiting for FINRA to declare the Effective Date.