Hey everyone. So for the last two years I’ve been investing in Nanoviricides(NNVC), an up and coming drug company which might fail or might, if I get lucky, make me super rich. I went to check my stocks today and I saw they were listed under NNVCD. I did some research and apparently that is a reverse stock split? I had roughly 3000 shares before…how many will I have now? Will I have more? From what I can tell, they are basically consolidating shares so I will have less but they will be worth more. Am I going to be getting some of the new shares?
Everything I’ve found on this topic is pretty technical so I guess I’m hoping someone will explain things to me in laymans terms.
It looks like the company did a 1:3.5 reverse split, so 3000 old shares is now 857 new shares. Other than the fractional part (which is typically paid in cash), you have the same shareholdings as before - they are just denominated differently. I’m also seeing signs that they did a recent offering - that could have seriously diluted you.
All they’re doing is changing the number of shares in the company. Your percentage of ownership will remain the same. Reverse splits can be done at whatever ratio the company chooses. If the split is 1:100 (one for one hundred) that means for every one hundred shares you own, you will own one “new” share. The share price will also adjust to reflect the change. A stock trading at $0.01 that undergoes a 1:100 reverse split will start trading at $1 the day of the split, assuming everything else remains the same.
A Reverse Stock Split is when your (for example) 400 shares of totally worthless stock becomes 4 shares of almost worthless stock.
Or at least that was how it worked for me.
I had roughly 3000 shares before…how many will I have now? Will I have more? From what I can tell, they are basically consolidating shares so I will have less but they will be worth more. Am I going to be getting some of the new shares?