CNBX Pharmaceuticals Inc (CNBX)

[WallyWest]

Reverses rarely work. They usually lose value instead of holding it. When companies do it to stay/get on a larger board with a minimum listing requirement, they’re just begging to be shorted. Also, for a pre-revenue company, you don’t mind being at these levels because that’s where you find investors willing to take the risk. At higher levels, investors are looking for something else, like revenue. So, you could reverse split a pre-revenue deal and then find yourself priced out of your own market. The CNBX float is still pretty small, all things considered... a reverse split would also make the market more volatile. Organic growth based on strong fundamentals is the way to go here.