Lets look at what was said by the company in that filing:
To grant discretionary authority to the Board of Directors to amend the Certificate of Incorporation of the Company, as amended, to effect, at any time on or prior to the date of the 2014 Annual Meeting of Stockholders, a reverse stock split at an exchange ratio within the specified range and to set the number of authorized shares effective immediately after the reverse stock split at 75 million shares;
Read the above paragraph carefully. It says it wants permission to have the power of being able to reverse split at any time on or prior to the date of the 2014 Annual Meeting of Stockholders.
It does not say they intend to reverse split. I believe it is only a precautionary measure to be used in case of delisting possibility in the future. They were below a dollar for a brief time which is below Nasdaq's minimum threshold to maintain listing privileges.
But, lets say they did reverse split. I don't think it would hurt this company at all as they are solid. This is not a pink sheet company that issues billions of shares for an unknown product and then reverse splits only to do it over again and again. This company has plenty of cash and is in development and commercialization of targeted chemotherapeutic oncology drugs based on its proprietary heat-activated liposomal technology. The company has developed ThermoDox, a liposomal encapsulation of doxorubicin, which is under Phase III clinical trial for primary liver cancer; under phase II clinical trial for colorectal liver metastasis; and under phase II clinical trial for treatment of recurrent chest wall breast cancer. It has a development, product supply, and commercialization agreement with Yakult Honsha Co. for ThermoDox and a joint research agreement with Royal Philips Electronics to evaluate the combination of Philips' high intensity focused ultrasound with its ThermoDox to determine the potential of this combination to treat various cancers.
I don't think a reverse split is coming, but if it does, it won't hurt share holders after the initial shock. After all, insiders have been buying. When insiders buy, you should buy because they know a lot more about what's going on than we do.
One more thing, it's possible they wanna make some future acquisitions using shares, so a reverse split could be used after that.
