David Lazar's OTC SPAC's/CUSTODIAN Plays

[Nistel]

I think it will also depend on share structure of the shell.

For example XNNHQ, I would not see how a new company would execute a reversed split when the float is only 26M shares already with 50M AS. Even a forward split would feel more likely.

For many shells with a heavy weight of (billions of) shares outstanding yes it makes sense the new company wants to clean up the share structure first. It all depends on the quality of the new company what will happen after that.