Category: Reverse Stock Split Cash Out
Current Price: $3.68 as of 11/12/20
Expected Price: $3.75 per share
Max Size (for odd lot): 1,999 shares
Expected Timing: November 29, 2020
Profit Potential: $139.93 as of 11/12/20
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This is very similar to the Westell investment idea I motioned previously. However, it is much less appealing from a profit and ROI standpoint.
Most Important Excerpt: Reliv International, Inc. (NASDAQ:RELV), a developer and marketer of nutritional supplements that promote optimal health, today announced that it will effect a 1 for 2,000 reverse stock split (the “Reverse Split”) of its Common Stock followed immediately by a 2,000 for 1 forward stock split (the “Forward Split”) of its Common Stock (collectively the “Stock Split”). The Stock Split has been approved by written consent of holders of a majority of the Company’s outstanding Common Stock. Interests in fractional shares owned by stockholders owning fewer than 2,000 shares of Common Stock will be converted into the right to receive a cash payment of $3.75 per share owned by such stockholders prior to the Reverse Split. However, if a registered stockholder holds 2,000 or more shares of Common Stock in its account immediately prior to the Effective Date of the Reverse Split, any fractional share in such account resulting from the Reverse Split will not be cashed out and the total number of shares held by such holder will not change as a result of the Stock Split.
The Company expects the Stock Split Transaction to be effective on or about November 29, 2020 (the “Effective Date”). Prior to the Effective Date, stockholders can continue to buy and sell shares of the Company’s Common Stock on the NASDAQ Stock Exchange. Any trading in our common stock after the Effective Date of the Stock Split Transaction would only occur in privately negotiated sales and potentially on an over-the-counter market (an “OTC market”). The Company intends to include our Common Stock on the trading platform operated by the OTC Markets Group and comply with its informational and other requirements. Future trading in our Common Stock will not be conducted on an exchange, but through FINRA registered broker/dealers choosing to make a market for our Common Stock.
*Update*
I emailed Investor Relations and received the following back from the CFO today (1/5/21).
“The stock splits and cash out of stockholders has been delayed due to the change in listing from NASDAQ to the OTC markets. Trading of our stock continues on the OTC Markets, and we are in the process finalizing the splits and cash out. We are working with FINRA to resolve the matter and hope to have it resolved later this week or early next week. We will make a formal announcement once the date has been set. The cash out price remains at $3.75 per pre-split share for those stockholders with fewer than 2,000 shares.”
Looks like things are on track still, despite the delay. Be careful buying more shares since they would need to settle before the split occurs in order to be eligible for cashout. However, any shares you already hold should be good to receive $3.75 if what the CFO wrote holds true.
Teeny Trader 