Enzolytics Inc (ENZC)

[raja48185]

I would say 'never say never ever'.

At this time it looks very unlikely. There is a misconception that Reverse Split is bad for the stock and there is a reason for it. Majority of the RS are done by firms that want to maintain a minimum price for the stock that has already tanked and is facing the risk of de-listing ( inability to meet compliance). Once they do the RS, they issue more stock, based on the new price after RS (at a discount of course) to raise more Capital and in the process, attract these vultures/HF who get a good deal - typically a stock at a great discount (that they may have shorted earlier before the RS) with warrants given away (almost) at free of cost.

A Reverse Split from a position of strength is different and rare. It attracts quality investors and then more often than not, results in the pps gaining traction and moving higher as a series of good news gets out.

Not sure if ENZC with such a big share count would offer a forward Split and / issue more shares to begin with. If they are planning on up listing to NAS, then a RS would make sense - it helps to get the pps to a higher price, the reduced number of shares gets it more attention (at least in theory)and if there is potential, then there will many big boys who would jump in.