Hello Reddit!
This might not be the right space for this, so please point me in the right direction if it isn’t…
Long story short: I worked for a startup that provided me stocks(2000 shares), and they just announced a consolidation. I have no idea what this means for my current shares, and I’m hoping someone has had experience with something like this and can assist! To me, it sounds like I just lost everything, and they owe me a penny. Haha
Here is the wording:
NOTICE OF MANDATORY CONVERSION
TO: The holders of Original Preferred Shares in the capital of the Corporation (collectively, the “Shareholders”)
Pursuant to Section 7 of Part B of the Articles of the Corporation, as amended (the “Articles”), the Corporation hereby gives notice to the Shareholders that effective as of 12:01 a.m. (EST time) on November 10, 2022 (which is the Mandatory Conversion Time for the purposes of the Articles), all of the Original Preferred Shares in the capital of the Corporation (the “Shares”) converted automatically into Original Voting Common Shares as set out in Section 7 of Part B of the Articles.
TO: All holders of Original Common Shares (“Original Common Shareholders”) in the capital of [Company Name]
RE: Fractional Original Common Share Cash-Out Notice and repurchase by the Company of fractional Original Common Shares
This notice is given to you in your capacity as a holder of Original Common Shares in connection with a recapitalization transaction that was undertaken by the Company on November 10, 2022 (the “Recapitalization Transaction”), in connection with which the Company amended its articles pursuant to the Articles of Amendment dated as of November 10, 2022, attached hereto as Schedule A (the “Articles of Amendment”).
As set out in the Articles of Amendment, the Original Voting Common Shares and Original Non- Voting Common Shares, each in the capital of the Company (collectively, the “Original Common Shares”) were consolidated on a 10,000,000:1 basis, rounded down to the nearest whole share (the “Consolidation”).
Following the Consolidation, shareholders holding a fractional number of Original Common Shares are entitled to receive a payment from the Company in the amount of US$0.01 for their outstanding fractional Original Common Shares, which has been determined by the Board of Directors of the Company to be the current fair market value of such fractional shares, rounded up to the nearest US$0.01 (each shareholder’s “Consideration Payment”). Each shareholder may pick up their Consideration Payment at the Company’s registered office.
Thanks for reading, and I hope you all are having a great day!
Leave a Reply