RE:RE:Reverse Split ($ 10.00 US$) Good or Bad?This is not a first. This proposition is ask every year and yet they did not do it as the timing was not there. They ask this in order to be ready to go to the Nasdaq if conditions makes it a win situation for the company and shareholders. It has to be ask and vote at the AGM for the year ahead in order to move on in a timely manner when the timing is good for the company like right after a major deal or a FDA approval. Once they sign a deal with a world class pharma for 4050 on IPF for instance with a large upfront, then the balance sheet concern will vanish, the confidence will get back and the value of the IP will drive the SP at a fair value. Then it will make sense to do a R/S and go to the Nasdaq in order to unlock share value because the american investor understand the true value of the IP (once the balance sheet is not a concern and you have a world class partner that is behind you) compare to the TSX where the SP can not unlock its true value once there is a FDA approval or a major deal. The board knows that a R/S has to be done for good reasons, not for bad reasons. There not gonna do it now at 80 cents! THEY KNOW IT
The board will not go on the Nasdaq tomorrow to raise money, they will go on the Nasdaq oncethere is a major catalist only. For that, they have to be ready to do it and this is why they ask the shareholder to vote now. Remember it, the purpose is to unlock value for the company and shareholders once the condition are met, not before.