Right on Brands Inc’s RTON board of directors has approved a 1-for-250 reverse stock split of its ordinary common shares. After the split the total authorized shares will be reduced to one-hundred million common shares with no par value.
At the commencement of trading when issued, every two-hundred fifty shares of the company’s issued and outstanding ordinary shares will be automatically converted into one issued and outstanding ordinary share.
Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-250 reverse stock split and do not need to take any action in connection with the reverse stock split.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in RTON’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares will be issued in connection with the reverse stock split. Any fractional share of a stockholder resulting from the reverse stock split will be rounded up to the nearest whole ordinary share. The reverse stock split will reduce the number of RTON’s outstanding shares from 5.9 billion shares to approximately 23.4 million shares. Proportional adjustments will be made to the number of ordinary shares issuable upon exercise or conversion of RTON’s outstanding equity awards, warrants or other convertible securities, as well as the applicable exercise or conversion price.
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