Replies to post #768041 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

They can set the price for the new shares as they wish using a reverse split (RS). The RS is carried out after exercise of the warrants and/or senior-to-common conversion.

For example, if the price of the legacy commons drops to 2 cents after an SPS conversion, they could raise it to $20 with a 1000-to-1 RS, or to $50 with a 2500-to-1 RS. The RS will reduce the number of shares held by the same amount.

[jeddiemack]

100/2 = 50 btw...

So... book value at $50 should be the minimum