H-D International Holdings Group (HDIH)

[Don Beasley]

Implications of a Reverse Split

Reverse stock splits generally carry a negative connotation. A company is more likely to undergo a reverse stock split because its share price has fallen so low that it is in danger of being delisted from a major trading exchange for failure to meet the minimum required share price level.

However, a reverse split can be beneficial to a company by boosting its stock price to a level that enables it to transition from being a penny stock traded over the counter to being listed on a major exchange, thereby attracting the interest of more shareholders.

https://www.investopedia.com/ask/answers/071415/why-would-company-perform-reverse-stock-split.asp