The once-trendy, San Francisco-born coffeeshop chain Philz Coffee has struck a deal to be sold off to a private equity firm for $145 million, but any employees who bought stock are getting the shaft, as they won’t see a penny of that money.
I tried researching this a bit, and from what I understand, the company basically has no money, which in turn makes the stock worthless. So since the stock is effectively $0.00 per share, they can just “cancel” the stock completely.
This could be oversimplified or dead wrong, but I don’t understand any other way this could work legally.
I tried researching this a bit, and from what I understand, the company basically has no money, which in turn makes the stock worthless. So since the stock is effectively $0.00 per share, they can just “cancel” the stock completely.
This could be oversimplified or dead wrong, but I don’t understand any other way this could work legally.
I think that’s how it’s been justified but the company just sold so it’s not worthless anymore right? Can’t have it both ways.