Niocorp Developments Ltd (NB)

[Prudent Capitalist]

That statement may be fairly accurate with many reverse splits, but let's remember that most reverse splits are gimmicks involving penny stocks, etc., many of which turn out to be scams. Even though Niocorp trades for under $1 in the US it is certainly not comparable to penny stocks. Reverse splits can be very advantageous in certain situations involving successful companies trading on the NYSE and NASDAQ, and if and when it happens here with NB/NIOBF I do not expect it to have an overall negative affect or result in a serious long term reduction in the share price post-RS. Moreover, the real value here ($Billions) is down the road. So if we need a RS to trade on the NASDAQ, so be it.

After a reverse split 1-10, I now have 1,000 shares and my value is the same. But, let's be honest, a reverse split generally triggers a stock decline after the event.