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mogami
Dec 19 11:41 am
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All Comments by FoolNHisMoney »Clarifying Sirius XM Reverse Split Issue [View article]
If they do the full RS before issuing shares, they would not be authorized to issue 200 M shares as the RS would apply to the share authorization as well, which is for 4 B shares now and would then become 80 M shares after RS. Also, they would probably not use the full allotment of authorized shares immediately anyway. It would probably unwise to do so and not have any shares in reserve in case they need to raise more funds in the future – even now, I believe they currently have authorized shares in reserve that have not been used. Also, allowing an additional 200 M shares on 80 M (there would be 80 M shares after 50:1 RS, not 60 M) would be a horrendous dilution for current shareholders!