Claritas Pharmaceuticals Inc V.CLAS.H

Reverse split

[wetbehindears]

again...new to this but invested...if I'm wrong let me know..

Having the reverse split happen before a dramatic increase in stock price would really hurt. It is the number of stocks we have that can create the value, not the pennies each share is worth  

if I have 500k shares at 4.5 cents and there is a reserve split that now has me at 250k at 9 cents no 'value' is lost. However, if the share price then goes to $1, I will have $250k in value not $500k  
 

So if there a chance of an increase in share price before the reverse split?

Sorry for my 'wet behind the ears' question

[Amazigh]

If you think the stock price will go to 1$ without RS, then with RS it will go to 2$ (taking your example of 1:2 RS as guidance) and probably even higher, as there are less shares in circulation. In the end you will have >500k$. However, this positive RS scenario will only work if there are well received PR's coincide with the RS. If that's not the case, then the stock will be shorted

[wetbehindears]

Thanks for taking the time to answer my question. Very helpful. Good luck!