Bravatek Solutions Inc (BVTK)

[TenKay]

Theoretically it should do nothing to the value of your holding. As a practical matter in the penny world it can have a negative impact due to the circumstances that lead to it.

Most RS's in the OTC are done when a stock has become illiquid at a very low (usually trips) pps. When the note holders cannot sell due to the lack of liquidity in the low trips, a reverse split has the effect of raising the pps and creating "room" at lower prices for liquidity to return as there is always someone willing to buy somewhere at a lower price. When a stock is at 0.0002 or 0.0001...you can't go any lower to find those "buyers".

So the result is usually a significant drop in the pps when the dilution returns. This is exactly the scenario BVTK went through twice in late 2015 and mid 2016.