The stock should bottom here in this range IMO, but who am I to know for sure. As far as the German investors go, if they did their DD they have already read back over the prior news releases from the company regarding the $4,000,000 minimum equity concern last year and the statement that the company now satisfies these concerns. The $1 minimum was not even mentioned by the exchange, nor was it mentioned a year ago when the proxy vote for 2013 was taken supposedly for the same reasons. Last year the company authorized the vote JUST IN CASE the exchange were to make that an issue, but did not act on it, and we have no reason to believe things are any different this time. I voted NO because in the event the exchange does issue such a letter, the company could hold a special vote just on that issue by itself in plenty of time for action.
Meanwhile, in the absence of any compelling reason to conduct a R/S, my gut feeling is (1) do not authorize it and (2) do not do it. The reasons are purely psychological - it does not prevent equity raises (i.e., dilution) with or without a R/S, it does not prevent shorting of the stock, does not necessarily bring in big investors who would like the stock if it were 5 times higher in price. However, what a R/S does is affect trader's psychology and sentiment because it gives the impression a company is going to do this as an easy way out to making share price look good for investors each time there is a dilution.
