Graphene and Solar Technologies Ltd (GSTX)

[adijas]

Reading it again I don't think there will be a formal split at all. They 'just' give shareholders 10 extra shares for every share they hold.

'Arrangements were made to increase the previous Vanguard Energy shareholders issued and outstanding shares from 1,002,134 to 11,023,474 shares for each VNGE shareholder proportionately.'

1,002,134 x 11 = 11,023,746. So that means you'll get 11 shares for every 1 share you own now.

So now why do they do that? Most of the times shareholders will end up with a small percentage in the new company after a reverse merger. In fact that is also the case with this RM. We have a little more than 5% in the new company (11 million shares out of 213 million). But by giving us 10 extra shares for every share we own they reward current shareholders although we get a small part of the new company. Actually, it's quite genius. This really is a big deal for shareholders.