MoSys Inc. (NASDAQ:MOSY) a pioneer in semiconductor offerings that allow fast, intelligent data access for network, cloud and communications systems, reported that as on February 15, 2017, it opted for a reverse stock split of its unpaid common stock in a ratio of 1-for-10. In the last trading session, the stock price of MoSys jumped more than 54% to close the day at $3.50.
The details
The reverse stock split was planned to increase the trading price of MoSys’ common stock to meet the $1 minimum bid price mandate for continued listing on The NASDAQ platform. Trading of the firm common stock on NASDAQ exchange continues, on a post-split basis, under the existing ticker “MOSY.” The reverse stock split minimized the count of outstanding shares of the firm’s common stock from almost 66 million shares before reverse split process to almost 6.6 million shares after completion of reverse split.
The count of authorized shares of MoSys common stock remains unchanged while the par value in terms of per share was reduced to $0.001. As a part of the reverse stock split process, every ten shares of the firm’s common stock, prior to split, was combined and reclassified into 1 share of common stock.
Equivalent voting rights and related rights of common shares holders will not be impacted by the reverse stock split process. No fractional shares are issued pertaining to the reverse stock split; shareholders who would otherwise get a fractional share of the firm’s common stock obtained cash in an amount equal to the offering obtained by multiplying the closing sale price on the effective date of the announced reverse stock split by the count of shares held by the shareholders that would otherwise have been swapped for the fractional share interest.
All restricted stock units unpaid, stock options and common stock reserved for release under the MoSys’ equity incentive program immediately before the reverse stock split will be suitably adjusted by dividing the count of affected shares by 10 and, as pertinent, multiplying the exercise rate by 10, as an outcome of the reverse stock split.
