I would agree that the average investor views a r/s as a negative event. But let's not overlook the total market cap of the company. That is where the value is. On 340mln shares o/s at .568, the market cap is only $193mln. Compare that with EXK which produces little more than USSIF, whose market cap is 1.02bln. At 5.2x USSIF, is EXK over-valued or is USSIF under-valued?
How low do you think the share price will fall after the r/s? At today's price the r/s sp would be $2.84. I think it goes to $5.00 within days of the r/s and AMEX listing.