Something you don't see too often..A stock price bid up on a reverse split announcement. Especially a 10/1 reverse split such as this one.
The general trend after the stock split is that the stock price whatever it was set at will start to drop over time. That means that the company becomes worth less, the downward leverage can be impressive on such a large split. At current share price and 136M share float the company is worth about $2.72M.
Lets assume the new share price is 20 cents after post split trading at a share float of 13M rounded. How many retail traders would be interested in this stock? I think not many. Lets say the SP drifts lower to 15 cents a sh. Company worth $2.04M.
I know spring is coming but a drop to 10 cents 50% is not uncommon. Now you can buy the whole kit and caboodle for a measly $1,35M.
My point here is that insiders can now load up on the company shares on top of the grants of cheap stock at a considerable discount. Only they know the companies true prospects. If the prospects are positive then the low share float provides another opportunity to fund the company via cash for stocks several times over with new stock grant opportunities along the way. Usually and eventually it's back again to wash, rinse and repeat.
And now a word or two for the retail speculator .
!. you think you are an investor stop thinking that way, you are a speculator, be honest with yourself
2. You keep a junior such as ABN on your radar because management is adept. Thats all I will say.
3. Remember you are in school all the time skipping grades will lead to failure.
4. Take a loss as a personal failure don't blame anyone else... keep up learning
I once bought 20K shares in a company called Allied Nevada ( now Hycroft Mining ) at $1,07 cents a share. A week later it went into chapter11 bankruptcy. This was no junior and I was looking forward to enjoying the dividend payouts in my old age.
Had I really dug deep enough I woud have discovered the red flags, but I didn't so the fault was really mine.