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Message: Re: Reverse Split, the good, bad and in between....

Profits....do you mean profit from selling your shares?  Or profits from the business reporting side of things.

Either way, let's break it down.  Because I'm a simple guy I'll keep the numbers simple. We'll say that at the time of a 1:2 share consolidation, meaning for each two shares a share holder owns pre-consolidation he'll have one post consolidation share.  We'll say that at the time of reverse the OS count is 200 million and the VWAP the reverse is calculated at is $4.

In this scenario a shareholder with 10,000 pre-consolidation shares priced at $4, he would have 5,000 shares post consolidation at a PPS of $8.  10,000x$4=$40,000 pre-split, 5,000x$8=$40,000 post split. 

The 200 million pre-consolidation outstanding shares would be reduced to 100 million. 

Now...in 2019 Resverlogix reports revenue of $300 million (pulled straight out of a place where the sun never shines) and realizes a profit of $200 million after expenses....all numbers from the same place.

$300 million in revenue brings Revenue Per Share in at $3 RPS.   $200 million in +earnings (profits) brings Earnings Per Share in at $2 EPS.  Had the split not taken place instead of RPS of $3 it would have been $1.50 and EPS would have been $1.  The totals don't change, only the ratios.

Clear as mud?

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