The MC won't change, they are simply dividing your shares and options by 10, which means the price of both will increase by 10, inclusive of strike
There are reasons why this is done. Firstly, a lot of investors won't touch stocks less than 1c, imagine a fund manager buying stocks at 0.004. It happens I guess but it is not the norm. This may bring more buyers
Secondly, it allows them to have more effective capital raises. They can give a 10% discount if the stock is 5c, but if the stock is 0.005 a discount to 0.004 drop is at least 20%, from 0.004 to 0.003 is 25% discount
I have no sentiment, just looking around for new stocks.
SBR Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
