Vapor Group Inc (VPOR)

[Tony_the_Tiger_1973]

A reverse split is just housekeeping. In a 1:5 split you get one share for every five you own, but the price goes up 5x, leaving the market cap and your investment at the same value. What needs to be understood is if there is an interest to drive the price down or sell shares... Recently a toxic note holder has shorted this one to under a penny in order to trigger an early conversion and sale. If a company had tens of millions in convertible debt, then a RS would be bad because likely they know the price needs to be propped up to get enough demand to sell off the debt. In a debt free situation it's not really bad because they're focusing on share price appreciation and uplisting rather than how they're gonna get out of debt.