Bald
The RS is coming as part of the consummation of the deal, not prior to consummation. Nationstar was protecting itself from some unknown effect of a reverse split in upcoming months causing issues with the conversion of shares for its shareholders. Why would they want shares if the RS caused WMIH share value to drop?
The reverse split will be done after WMIH begins trading in the days after the deal is finalized. Pretty easy to understand.
Maybe you should talk to WMIH management about the likelihood of the RS occurring after consummation of the deal as part of the requirement to meet Nasdaq listing standard. Even if they did get an exception, the RS still will happen for multiple reasons.
I did not go back and read the agreement. If it states that WMIH cannot implement an RS for a period of x years AFTER the deal is closed, then I am wrong. I do not believe that is what it states. I am sure Nationstar does not want share price to be sitting at around $1 going forward.
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