RE:Just got the AGM paperworksGoldenInvestor0 wrote: Just got the agm paperworks.
What are the drawbacks if we are in for a 1 to 10 or 1 to 20 reverse split ?
No drawbacks - if it gets us on the Nasdaq. In fact it would be a necessary first step to doing so.
Critics of RS's will say that stocks typically fall after a reverse split. That would be true if the Company DOESN'T have the goods (and it's merely an attempt to uplist, with only hype behind it - ie. no fundamentals, limited to no future cash flow prospects)
Companies that HAVE the goods (Spectral) will benefit through (1) meeting minimum share price thresholds, (2) institutional exposure that requires investable stocks to have prices over say $ 1 or $ 5, and (3) vastly increased exposure to key markets (e.g US)
My preference would be a lower RS ratio (e.g 10:1). Would have preferred 5:1 to be an option (or even 8:1). If for example FDA approval of DIMI pushed the stock to over $ 1 CAD, a 5:1 or more would be fine. But that would require at least a minimal marketing effort as well.
Example $ 1.20 CAD x 8 = $9.60 CAD = $ 6.85 USD (well above the $ 3 or $ 5 Nasdaq thresholds)
MM