If you have 10k shares at 1.50 = $15,000
after r/s, you will have 833.33 shares at $18 per share, however they do not issue fractional shares so the .33 fractional will be placed in a compu share account or your brokerage in cash roughly $5.94
there is no strike price technically, just an exact reverse ratio, the 12 for 1
the price can go in any direction before split and split at the 12 ratio approved, here's a few possible scenarios-
1- there's a selloff tomorrow from panic retail shareholders, can go to any price below 1.50, realistically if it did go down, it wouldn't go any lower .80 cents or so because most that own this stock are institutions and they are holding for the payday, so if it did go to say $1, it would reverse to $12, and everyone would have to wait for it to go back up to $18 (if they had bought at 1.50 originally)
2- the price goes up from here through Oct., this may happen if those that are short the stock need to cover immediately in fear which will drive the price above 1.50, they may also decide to short more and take it to $1 to cover at a lower price rather than panic covering their short positions, if KKR is short a big amount they will drive it down, if its mostly retail and small institutions, they will panic cover here tomorrow MAYBE
also keep in mind that short positions have to be closed out before the reverse mandatory
the post reverse float will be about 90mil outstanding shares and that is a very very small float which is hard to borrow if you want to short it after reverse, many retail trading chat rooms love to day trade low float stocks because they have parabolic moves, it doesn't take much to move them up because there aren't many shares to fight through
scenario 2 in my opinion is ideal
3- the stock does nothing , the market maker keeps it in a range of 1.4-1.5 until the reverse, with very little volume daily like the old days
The reason so many are in a panic as you noted, is because most reverses are failures of penny stock companies
however keep in mind that even good companies that reverse experience downturn in share price after reverse and they eventually recover, its just that your money will parked there dead until you can get your par or higher back
hope that helps
