KLX Energy Services Holdings, Inc. (KLXE)

[Pharaoh-1]

They want big institutes which can't invest in any stock under $5 or $10 to chime in, and they don't want the PPS to be close to $1, risking delisting if it goes below $1.

Obviously, when the merger happens, some entity will acquire good amount of shares. If they choose to sell immediately, this will drive the PPS down with such low float. If the PPS goes close to $1 or below because of this selling, there lies the risk.

I also think that this R/S will allow them to offer new shares to expand or for whatever reason without completely destroying the PPS (below $1). At least, these are my interpretations.

I don't think that buying volume will come in till these issues are cleared out.