They will issue "only" 4.5 Billion more not 8.5 Billion.
The reverse split will not dilute the equity. It is just so that they can meet one of the NASDAQ requirements.
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I understand that the reverse split will not dilute the equity, but I do feel that the price will not hold and we will still be trying to satisfy the Nasdaq's $1.00 Minimum.
I do have a question though...If there are 3.25B shares outstanding today and they do a 50:1 reverse split, that leaves 65 million shares outstanding at a theoretical price of $7.50.
They then issue 4.5B more shares for a total shares outstanding of 5.15B shares. How in the world can they maintain share price if they now have 42% more shares? I realize the reissue will generate cash, but quite frankly I don't see anyone paying $7.50 out of the gates for this stock. I think the shorts will drag it back down into the dirt. Why wouldn't they, now we have more shares for the same company.
I still consider myself a newbie at this stock stuff, so thanks for your patience.