I could have told you PFM* would probably do a brutal reverse split because there was effectively zero insider ownership of common shares and effectively no restricted shares, so there was no incentive for the incoming company to leave any value for the legacy shareholders of the shell. I *only* invest in custodianships with significant insider ownership for this exact reason. In the last 8-K (although there are some discrepancies in the filing - see my post history where I gave a full annotated explanation of this), there was 82%+ insider ownership of QUTR. This is an insane amount of insider ownership of common shares. The OS increased about 8% prior to the time period covered by the 8-K, and I haven't done the precise calculation, but it would be roughly 78%: that's still an almost unholy amount of insider ownership of common shares. Feazell (former CEO, now deceased, so presumably his heir) was listed as "Control Person" in the 8-K, and Feazell owns over 1B shares. If they had any influence in this deal, it's hard to imagine them destroying the value of their own common shares with a high ratio reverse split. It's noteworthy that the custodianship was unopposed, which to me suggests they wanted to custodianship to happen for the result it would have on the value of their holdings. Also worth noting, there have been no Form 4s, which would have been required within 2 business days if there were a change in beneficial ownership. This means, as I've stated before, that no insider shares were sold all the way up to .0189, and that's after they've been holding those shares for a decade or more. Why not sell any? They're not all restricted. I think they're waiting for something much better than our high of .0189.
So the above is why I'm not personally worried about a seriously damaging reverse split here. I could certainly be wrong - these plays are very, very risky and they don't always follow my rationale, but they very often do. Anyway, that's my thought process for whatever it's worth.
All my opinion of course and not financial advice.
H
