Positron Corporation (POSC)

[bpatient]

Robert ... I appreciate your response, but I was simply stating that news can be released after the announcement of a reverse split (at the company's discretion and within the rule you stated).
Positron is attempting to make the share price more accessible to larger investors. Without actually increasing the fundamental value of this company (revenue growth), a R/S resulting in a share price of less than $5 will not be desirable to the big-money players. And big-money investors are what positron needs to maintain a stable and growing market cap. Without large investors supporting the stock after the R/S, I believe the price will plummet once again. When you factor in human greed and psychology, it is much more likely for the stock to jump from 0.004 to 0.05 than from 0.40 to $5 given the same news release.

SEC Definition of Penny Stocks

http://www.sec.gov/answers/penny.htm

The term "penny stock" generally refers to a security issued by a very small company that trades at less than $5 per share. Penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board (which is a facility of FINRA) or OTC Link LLC (which is owned by OTC Markets Group, Inc., formerly known as Pink OTC Markets Inc.); penny stocks may, however, also trade on securities exchanges, including foreign securities exchanges. In addition, the definition of penny stock can include the securities of certain private companies with no active trading market.

Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Moreover, because it may be difficult to find quotations for certain penny stocks, they may be difficult, or even impossible, to accurately price. For these, and other reasons, penny stocks are generally considered speculative investments. Consequently, investors in penny stocks should be prepared for the possibility that they may lose their whole investment (or an amount in excess of their investment if they purchased penny stocks on margin).

Because of the speculative nature of penny stocks, Congress prohibited broker-dealers from effecting transactions in penny stocks unless they comply with the requirements of Section 15(h) of the Securities Exchange Act of 1934 ("Exchange Act") and the rules thereunder. These SEC rules provide, among other things, that a broker-dealer must (1) approve the customer for the specific penny stock transaction and receive from the customer a written agreement to the transaction; (2) furnish the customer a disclosure document describing the risks of investing in penny stocks; (3) disclose to the customer the current market quotation, if any, for the penny stock; and (4) disclose to the customer the amount of compensation the firm and its broker will receive for the trade. In addition, after executing the sale, a broker-dealer must send to its customer monthly account statements showing the market value of each penny stock held in the customer's account.