Dilution stock market
In the past, after the company announced the reverse split, the share count increased dramatically. Following a reverse split of 1 for 7 on May 11,the share count will likely be reduced from 65, to 9.
DRYS have not provided an update on the share count since May 02, This does not mean that the company did not issue new shares since May 02, Based on previous transactions reverse splits this suggests that the company is likely to issue new shares after they announce the reverse split. Therefore it is not worth it to take a risk.
Dilution
One of the SA readers asked the question of what will happen to their 6 shares after the 1-for-7 reverse split. The company clearly said in their press release that "no fractional shares will be issued".
The company further said as follows:. No fractional shares will be issued in connection with the reverse split of the issued common stock.
Shareholders who would otherwise hold a fractional share of the Company's common stock will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company's common stock on the Nasdaq Capital Market on May 10, Based on the previous transactions, it is certain that the company will issue shares after they announce the reverse split.
The share count mentioned on their pressure release i. My rough estimate is that the company may potentially issue dilution stock market to 1 billion new shares to raise the remaining capital.
The Dangers Of Share Dilution
Do not be fooled by the share price spike because share dilution could happen whenever there are share spikes. Get my articles as soon as they are published by clicking the big orange " Follow " button at the top of this page.
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The Dangers Of Share Dilution
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What Penny Stock Investors Should Know About Dilution - dummies
Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks. Dilution Just Before Reverse Split? Summary In the past, after the company announced the reverse split, the share count increased dramatically.
Since inception the company issued close to 1 billion new shares. As of May dilution stock market,the company had 65, shares issued and outstanding.
But I indiabulls options trading the share count on May 11, would be more than 9. Seeking Alpha Binary option demo account online free no deposit Thesis DryShips NASDAQ: Previous Transactions dilution just before reverse split On January 19, RS 1 for 8the company announced that the reverse stock split will take effect and the company's common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the opening of trading on January 23, The company further states that the reverse stock split will reduce the number of issued common shares from 69, shares to approximately 8.
I could not find the share count for January 23,and there were no press release between January 23, and January 30, On January 31,the company announced that they have 36, shares outstanding.
On April 06, RS 1 for 4the company announced that the reverse stock split should take effect. As well as this, as of April 11, the company's common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market.
I was not able to find the share count for April 06, On March 15,the company issued an outstanding , shares of common stock. On April 11, the company said that the 1-for-4 reverse split shall decrease from , to approximately 44, After the reverse split, the share count was 47, instead of 44, On May 02, RS 1 for 7when the reverse stock split becomes effective, every seven shares of the company's issued common stock will be automatically combined into one issued share of common stock.
This will reduce the number of issued common shares from 65, shares to approximately 9.
I expect a 9. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here.