Zion Oil & Gas Inc (ZNOG)

[DragonBear]

People might be confused after the reverse split of shares, causing additional warrants to be exercised.

The hitch is the number of shares controlled by each warrant also undergoes the R/S.

If a 10:1 reverse split occurs, the new share price will be ~$4, making the warrants look useful, but they are still a big loss.

A warrant previously controlling 250 shares would be convertible to 25 shares after a 1:10 split. If exercised at the $1 strike with the stock at 4.00 after a 1:10 split, the loss would be $170/warrant exercised. The initial cost of the warrant ensures it's a loss.