Aurora Cannabis Reverse Stock Split

@David Aurora is due to reverse stock split 12-1 on May 11th, my question is how T212 will sort it? Will our shares gonna be replaced to smaller amount or will we be forced to sell them with the price from that day?

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Lower share quantity, higher price, therefore same (give or take minimal rounding) value. T212 custodian should resolve on the day , remove your current line of stock and replace with 12:1 new line of stock. Should happen automatically as it’s a mandatory (rather than optional) event.

Shares fell below the $1 mark and the NYSE threatened delisting.

Therefore they’re just swallowing 12 old and crediting 1 new. Price will adjust accordingly.

‘Reverse stock spilt’ is an odd Americanism for ‘consolidation’ - which (to my mind) makes way more sense!

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Will have same issue with Kopin shares but I think they still didn’t announced date of reverse stock split that’s why I’m curious how it’s gonna look with Aurora that I wouldn’t have to worry about other stocks xD

You don’t have to worry.
Brokers are obliged to reconcile daily.
They’ll identify the holding change and apply it to your account as soon as they can.
If they don’t that would constitute a potential “breach” under FCA rules.
So know the day it’s supposed to be coming and watch out for it
If T212 don’t apply it quickly…pick them up on it here or by email

Thanks @Finki for all helpful informations, appreciate it

Lets hope there’s no repeat of the Chesapeake Energy (CHK) fiasco that happened yesterday and was caused by a 1:200 “reverse stock split”. The T212 platform displayed the new, higher share price but failed to adjust the number of shares held. This resulted in an apparent jump of 10,000% in share price and pandemonium ensued.

Usually caused by the split happening and the old and new stock maintain in the same ISIN and Ticker identifiers.
I assume this was the case for Chesapeake? I’ll check out the Aurora details …

Yep.
CHK maintained its ISIN and Ticker (CHK) post reverse split.
Therefore the asset remains the “same” but you have less of them and the price jumps.
Unless your provider processes this event and reflects the “new” amount of shares you have,whoops!
It looks like ACB will be the same.
It’s not scheduled until May 11th so T212 have time to know it’s coming and prepare for it.

For what is’s worth I’ve been caught out by events like this when I was managing back office teams and “corporate actions” spring out of nowhere.

One solution was to prevent trading on stocks that jump 10,000%
No stock jumps 10,000% without the need to be looked at.
In all cases it was due to a split/consolidation affecting the stock price.
We therefore processed the corporate action and allowed trading again. Simples.

I guess this puts T212 putting a magnifying glass to their corporate action department and corporate action data vendor?

Fun times

I think you got the other way round… |t’s 1-12.

Today is the day of ACB stock split, will trading of this stock be suspended until you gona change amounts of shares in our accounts? Or we’ll be able to invest since market opens in US?

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The reverse stock-split is completed & you’ll be able to trade, right after the opening bell.

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Can i ask what happens to shares not in multiples of 12? I know its not a lot of money

They’ve been sold in latest price available

Thanks pal. Didnt see that

I had 70 aurora cannabis before the split. But after the split I only had 5 shares? Shouldn’t it be 6?

You had 70, split on 12. 70/12=5.8333, meaning you got 5 stock and remaining 10 got liquidated at last price. Meaning 10 remaining got sold and added to your free fund pool.

To get 6 you should have 72 of them

Thanks for the quick response. Unfortunately, I just can’t understand how much of the rest was sold. In the history I do not see any sales entries. Im not sure if the 10 remaining was added in my free pool. Is there a way to check it?

@Team212 @David @Martin can you do sth with ACB historical price shown on chart? I think your system just multiplied historical price by 12 and now it shows inaccurate data.

@Ashige Sorry, could you elaborate on that? Everything seems fine with the historical data.