I have 4 shares, 2 short of 6. Will I get a cash payment of $4.80 (4 x 1.20 = market close) for those shares or $0.80 (2/3 x 1.20 = the fraction of the close on 2 Oct).
This answer on their website is not clear to me.
How are fractional shares treated in the reverse stock split?
No fractional shares were issued. In accordance with the Amendment to the Amended and Restated Certificate of Incorporation filed with the State of Delaware, Zalicus stockholders who
would have otherwise been due a fractional share will receive a cash payment instead of such fractional share determined on the basis of the closing price of Zalicus common stock on the NASDAQ Capital Market on the last business day before the effective date (October 2, 2013).
Pretty straight forward if you read the press release. The old shares are valued at 10/2/2013 closing price = $1.20 per share. All fractional shares will be converted to cash at that rate based on a 6:1 ratio. You will either get a credit in your account, or a check in the mail (if you are holding actual certificates) for any fractional shares.
1,000 shares will now become 166.666 and the 0.666 fractional share will be paid to you or your account as 6 x $1.20 x .666 (fractional share) = $4.80.
Bottom Line: 1,000 old shares will now equal 166 new shares + $4.80 cash.
Have a good day as we will now start TTMA as we go deeper into the current quarter. JB
Found this piece in their FAQ:
The reverse stock split resulted in some of our stockholders momentarily owning “fractional” shares. For instance, if you owned 1,000 shares now, you would own 166 and 2/3 shares after the reverse split. No fractional shares will be issued and instead fractional share amounts will be converted to cash at the closing price for a share of our common stock on the NASDAQ Capital Market on October 2, 2013.
So I get 80 cents.....for the 4 shares that at closing today was worth $4.80 - not much I know but it could add up to a hefty amount for ZLCS when all considered - if I understand this correctly.