Good question - the cap is 28.06 which works out to .0535 shares of EXAS for every 1 share of SQNM. 1000 shares of EXAS would be redeemed for 53.5 shares of SQNM.
I've never been involved in such a transaction but I'm guessing it's done through the broker where the shares are held. Regardless if SQNM goes to 30 or 40 the # of shares would be the same - .0535 shares of SQNM for every 1 share of EXAS.
>Under the terms of the proposal, each share of EXACT Sciences would be exchanged for $1.50 in Sequenom common stock. This consideration would be subject to a floating exchange rate within a 15% collar, in which the price of Sequenom's common stock is between $20.74 and $28.06 per share.<