CMG Holdings Group Inc (CMGO)

[rbd1]

The attached example is a good reason for not doing a reverse split, no name used but it’s a real case.


To say that investors were not thrilled with the plan would be a major understatement. The split initially had the desired effect, with shares spiking to a non-penny-stock level on July 25. However, sellers rushed in, and the stock quickly plummeted to a level even lower than before the split became effective. As of March 25, 2019, the stock trades for just over a penny per share.