A reverse split doesn’t require all authorized shares to be issued. What it requires, is an appropriate ruling by a shareholder meeting. Some companies have a voting structure that allows them to take just about any corporate action without a meeting. EVIO can’t do a R/S, while not fully current. That’s the real obstacle. An application for a change in SS would be rejected by the SOS. Also, the prospect of a R/S is one of the favorite schemes to scare people with, on message boards. A R/S as such doesn‘t cost anyone shareholder value. What is extremely misguided, is to do a R/S while trading at or near trip zero one. The reason is quite simple. 0.0001 is the official minimum bid of the market place. It doesn’t apply to pros, but retail can’t usually place any limit, lower than 0.0001. That makes TZ1 a barrier, based on a pure technicality. This means that money might be drawn to a stock, based solely on this technicality and the resulting flipping attraction. The valuation of the company, resulting from this price, doesn’t necessarily require any conviction behind it, but a R/S can put that valuation to the test, since lower prices suddenly become an option again. It’s like removing the floor, while you‘re standing on it. There have been a number of disasters, resulting from such lack of judgement. Two examples are SPRV and BBRW. The latter is a recent example. If a company advances far beyond TZ1, a potential R/S becomes less of a threat.
The company‘s ambitious goal, to uplist to the OTC-QB, is actually a hint that there one day might be a R/S, simply because the stock would have to 100-fold from here, to meet the eligibility requirements. That remains to be seen. LOL. If they‘re smart about it, they will wait until the SP itself is the last remaining obstacle for an uplisting. They could then announce the R/S in conjunction with the uplisting, as a means to achieve their ultimate goal. The market might actually reward that. In most cases, companies announce reverse splits, almost without advance notice.
For the moment, we should be looking at a regulatory obstacle, protecting us from a R/S. The company‘s got its work cut out for it. Like I said, if they‘re smart about it, they‘ll focus on advancing the business, and on gaining investor confidence. They can worry about the share price later. We‘ll see if they deliver. GLTA!
