Paybox is conducting a 1000 for 1 reverse share split. Holders of 999 or less shares will receive $0.80, compared to a current share price of $0.54.
The ticker symbol is PBOX and the stock trades over the counter at the OTCQB. Insiders own a majority of the company and want to take it private.
Cash on hand should cover the costs of paying out small shareholders, even assuming a relatively significant number of small holders have added positions. Based on the filing management seems pretty motivated to get this done.
The Board of Directors has decided that the costs of being a Securities and Exchange Commission (“SEC”) reporting company outweigh the benefits and, thus, it is no longer in the best interests of the Company or the best interests of our stockholders, including our unaffiliated stockholders, for us to remain an SEC reporting company. The reverse stock split will enable us to terminate the registration of our common stock under the Exchange Act, if, after the reverse stock split, there are fewer than 300 record holders of our common stock and we make the necessary filings with the SEC.
How does that work out for you?
Cost: .54 x 999 shares + $9 commission = $548.50
Return: .80x 999 shares +$0 commission = $799.20
Total return = $250.70
You won’t be cashed out automatically. You’ll have to call your broker after the shares appear in your account. The company advises: “Persons who hold shares of Company common stock in “street name” are encouraged to contact their bank, broker, or other nominee for information on how the proposed transaction may affect any shares of Common Stock held for their account.”
