Synaptogenix Inc (SNPX)

[InTheTrenches]

Easy...it's for flexibility.

Let's say phase 2b results are stellar, the share price goes to $300 over the next year, and the company decides to do a forward split, say 5 new for 1 old; each new share would now trade for $60.

On a fully diluted basis, there are approx. 13M shares/warrants right now, so they have to issue 52M new shares/warrants to do the forward split, bringing the total to 65M shares/warrants outstanding (out of 150M authorized). Without the authorized shares, they would have to get shareholder approval first.

However, as with all forward splits, the company market cap is exactly the same before and after the stock split, so even though new shares are issued, no stock holder has lost any value:

1000 shares X $300 = 5000 shares X $60

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"Reverse stock splits don't affect the number of authorized shares, but a forward stock split issues new stock from the company's authorized shares."