DarioHealth Corp (DRIO)

[jimmenknee]

The company chose to reverse split to the maximum they were allowed. Back in May, they asked the shareholders to authorize them to have the option to do an RS: "... between one-for-two and one-for-five with such ratio to be determined at the sole discretion of the Board (the “Reverse Split”) and with such Reverse Split to be effected at such time and date, if at all, as determined by the Board in its sole discretion (the “Reverse Split Proposal”) ..."

And what the shareholders were told the reason for the split was indeed to seek listing on a higher exchange: "... If the Board determines to effect the Reverse Split, the intent is to increase the stock price of our Common Stock, which is currently trading on the OTCQB, to a level sufficiently above the minimum bid price requirement that is required for initial listing on both The Nasdaq Capital Market and the NYSE MKT LLC (the Nasdaq Capital Market and the NYSE MKT LLC collectively referred to as the “Exchanges”) such that the Board, at its sole discretion, may apply for initial listing on either of the Exchanges ..."

And the share price at the time (5/14/14) was well above today's-- it closed @ $1.35

Retail Shareholders (at least those who voted based on the Proxy Statement) got duped; but to be fair it appears management got themselves in an equity "pickle."

Having said that, I think management's credibility (written word) with handling the equity side of the company should take a hit given they went forward with the RS prior to the promised notification: "... the company will make a further announcement regarding the exact timing for the stock split. ..."