KAT Exploration Inc (KATX)

[B402]

Investopedia explains 'Reverse Stock Split'
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.

Within 1 week the share price will be cut in half or more. And just as with the spin off shares, the insiders will be dumping while you, the retail investor have your share locked up and untradeable for at least 2 weeks. Last time e-trade had a 20 day hold on R/S trading for me personally.