In my opinion yesterday event meant only one thing.
Nothing we already knew there was a Possible Reverse Split Coming the size 1:500 would represent 500X from today's shares price or $30.00 (check may Math)
What it really meant was Contingency Planning
NASDAQ reviewed their plans prior to up list Considering the following:
However, as we went through all of the reverse splits over the past 12 years, we discovered a number of motivations issuers cited to reverse split, including (FROM THE NASDAQ SITE)
Attract institutional investors – Stocks below $5 are considered “penny stocks,” which tend to be favored by retail Often these stocks also can’t be used for collateral when margin trading—for example, Fidelity requires that equities and ETFs be priced above $3 for margin borrowing—which also deters institutions.
Lower transaction costs - Very liquid, low-priced securities face artificially wider trading costs if they are tick-constrained, as we note above. Although here we only consider corporate stocks, ETFs also do reverse splits to maintain optimal tradability, including Vanguard’s S&P 500 ETF (VOO), which completed a 1:2 split in 2013 to reduce trading costs.
Minimum listing standard – Nasdaq and NYSE both have Continued Listing Requirements that mandate stock prices be above $1. In addition, often stocks with “No Price Data” were trading OTC markets before completing a reverse split in order to be “uplisted” to a national stock exchange.
Corporate restructuring – Companies may be making structural changes (change of business focus, capital restructuring, etc.) and desire a new, higher stock price to reflect a fresh beginning.
Merger contingency – Some companies enter into merger agreements but require that the party being acquired have at least a certain stock price level.
Based on the Above some of these items can be ruled out use your imagination.
Feedback from NASDAQ was likely if your maximum reverse split is 1:100 and you really need it, will it keep you on NASDAQ if traders don't respond to your news? You need to plan for the eventuality that it does not but at that point you can't go back to shareholders without doing more harm.
What would you do?
After receiving NAZ feedback and redoing the RS range the Definitive Statement in 8 Days will likely be Up list or FDA if not Both.
Just My Opinion!! Is a nothing Burger. RP was pissed when he first saw this, but I asked myself who would that benefit. Certainly not the New Board Members Do the Math and see what they will be left with.
Buy More $SBFM Its a Cancer and COVID Killer
But do Your Own DD
