A reverse split is the same for the shorts as the long positions, effecting nobody really.
HOWEVER....the company issued a bigger float and authorized shares percentage wise then before It wasnt reduced by the same 530X
That makes it conducive for negative types to continue on with their ways as there is more liquidity then before, its easier for them to cover again on these lows, or to press the stock lower for further gains. 5 cents down to its current 1 cent.
If the float and authorized shares was also reduced at 530X, then all things would still be equal, but its not, the constant increase in float and authorized shares makes it add liquidity each time, which helps shorts cover on low or further sell or short it down.
If the float was reduced at greater then 530X, then the stock would be tighter and would be conducive for the price to more easily go up.
While significant positive news, or positive material changes can help suck up the extra shares now authorized or in float, it still has a damping effect compared to having no dilution. The stock can still move up, but more shares need to be bought to suck up the float.
So, PRGL is further diluted, besides having been reverse split. Its Bio plant is also online now, which is a positive thing.
