R/S's Have To Be Interpreted As To Why.
A R/S, following an uplisting to the OTCBB, will attract more serious investors. A R/S just to be able to dilute more (ie gain revenue solely) is terrible. A R/S, followed by dilution, followed by aquisitions sends euphoric chills up my spine (debt for business building is allowable and necessary). A baby conglomerate is formed. An R/S is a positive.
AIG was a classic example. A 30/1 R/S, I believe,
was done to attract investors (the stock fell below $1.00) and to keep NYSE eligibility requirements. It was a desperation play. What then happened was Traders got involved with the stock and the price went up over $50.00/share. The stock should not even have been allowed to trade (this was per Jim Kramer going on record). He also said AIG and GMGMQ should be pulled from trading. GMGMQ was shortly pulled. AIG still trades.
