Golkor Inc (GKOR)

[Grahamber]

I could use some help with this question:

If KATX announces that all holders of their stock at the end of June 30th will receive 1 BVIG stock for every 4 of KATX then it would mean 25% free shares in BVIG; can someone then sell all their KATX July 1st and still keep their BVIG free shares?

If yes, won't this be a huge push for pps to go up before eod June 30th and then to crash in pps July 1st for KATX?