[oroup]

$1300 is really an unusually high strike price. While in theory there is no difference between 200 options at $1300 per share and 20k options at $13 per share, the former is very unusual and I'd at least want to know the story. If the company is to IPO there will almost certainly be a stock split.

One way to force small stakeholders off your cap table is to do a reverse stock split because fractional shares are typically paid out in cash. If that were the case here, I'd call it sketchy behavior and steer clear.

[patio11]

Your scenario is the company with the $1,300+ strike price will do a reverse stock split because they want to IPO with a $6,500+ share price instead?

[oroup]

No my theory is that they may have already done a reverse split to wash out small stakeholders. If there is an IPO in their future they will have to do a split as well. The former small stakeholders would not get their shares back.

Obviously I know nothing about this but if I were the poster I would ask to hear the story.

[otterley]

I agree; I've never seen such a high strike price. The highest I've ever seen when interviewing at pre-IPO companies was in the $20-$30 range.

I'm curious now which company this is, because that kind of price doesn't pass my sniff test. In fact I'd steer clear altogether.

[dajohnson89]

I thought exactly this. $1300 per share seems like an obvious way to keep the small fry out.