papaphilip
Just took the time to check out your stock and my comment would be SELL ASAP.
What is causing the unbelievable price spike doesn't really matter. We trade to make money and if you can unload what ever you have at these prices you did that. Looking at a 2 yr chart, you can't hold it for over 1 cent.
The only problem may be the low daily volumes. So you should dump in stages (offering below bid sells will cause your stock to sell first in the queue line).
Try to keep your sell size within reasonable proportion to the total daily volumes or you may drive the price lower. The rule of thumb for this effect is one should not trade more the 10% of the daily volume. But in your case, with the volumes around 300k and you holding a few thousand you may try 50% first to 25% or 150k to 75k a day and see if the price comes down. If not raise the amount offered each day and see how it holds.
Now a little about reasons this may be happening. You think it's because of a possible reverse merger. As I said it really doesn't matter, but IMO this is happening because someone wants to hold a controlling interest in the company stock. So they are buying up (SLOWLY) in the hope to keep the run from continuing.
EXAMPLE: They are buying all the daily volume. In the beginning. You can see the million share days stopped quick, when they notice how many old bag holders started dumping out. So they started only buying a few hundred k a day.
Their problem is the word got out and everyone was trying to sell causing the buy price to continue to raise.
Your problem is you have to dump without causing the reverse. This may be a battle of patience. They want to own controlling interest and you want to sell to them, but they want it as cheap as possible and you want it as expensive as possible.
At Any rate; this process could take some time, as long as they don't have a time deadline to worry about. If they do, say own control by next month, you should do OK. If there is no dead line you may be selling drips and drabs for months.
Good luck.
