Novation Holdings Inc. (NOHO)

[KSEAVER]

Noho R/S Not always a bad thing...
As an example of how reverse splits work, ProShares Ultrashort Silver (ZSL) underwent a 1-10 reverse split on April 15, 2010, which grouped every 10 shares into one share; accordingly, this multiplied the close price by 10, so the stock finished at $36.45 instead of $3.645. On February 25, 2011, ZSL had a 1-4 reverse split (every 4 shares became one share, which multiplied the close price by 4, to $31.83). Because of these two actions, one share of ZSL as of February 26, 2011 represents 40 shares of ZSL before April 15, 2010. These splits were necessary to maintain the share price of the fund, whose value fell 90.2% from April 15, 2010 to April 21, 2011, and over 98% since December 3, 2008. Had the reverse splits not taken place, ZSL's closing price on April 21, 2011 would have been $0.3685, rather than $14.74, or .3685*40.[5][6]