On the dividend shares, the way I took it is that FNRC was effectively doubling your share count from April 28th, and that you would receive your additional shares in 6 to 12 months.
You got 1 preferred share for each 100,000 common shares, which are later convertible back into additional common shares at 100,000 common shares (now 5 shares) for each 1 preferred shares. Go back and read the press release if you want the exact words.
The reverse split applied to the common shares, but did not apply to your new preferred shares. But my assumption is that when the preferred are converted back into common, the reverse split applies.
So, for example, if you had 1 million common shares before the split, you would have gotten 10 preferred shares (1 preferred for 100,000 common). Then after the reverse split, you would have 50 new common and the 10 original preferred (1 new common for 20,000 old common).
Then in 6 to 12 months you get another 50 common (5 common for each preferred), giving you a new total of 100 common, effectively doubling your original 50 common.
Sorry, none of us is going to become a millionaire from the dividend shares. All the dividend shares do is double the share count we had on April 28th.
Buying shares now at around $1 is like buying at $.00005 before the split.
If you thought FNRC was going to $.0005, for example, before the split, that equals $10 now, due to the 1 for 20,000 reverse split.
At the moment, my personal objective for this stock is $6, which I think we could hit if we get news that drilling in the Utica has begun.
Cropduster
