The primary reason to do a reverse split is to get the company listed (or relisted) on a primary exchange. According to Investopedia (see below) you need at least a $4 price when you relist on the NASDAQ (with some exceptions and other requirements). Many, if not most, mutual funds and some market makers and brokerage houses wont even deal with a stock under $5 a share.
A reverse split would be ineffective at these levels. In fact, the stock would have to be much higher in order to make the RS meaningful. For us, it would make sense if we could get to 50 cents ourselves, get off the pink sheets along the way, and then do a 10 for 1 RS to bring the shareprice to $5. Then GLEC would have institutional interest, market maker interest and an possible increase in volume that would further drive the price up and make it an acquisition possibility. I am sure Pete knows this and that is why he hasnt done anything stupid regarding a RS up to this point, and he shouldnt until the company stands on its own two feet. Of course, a 50 cent shareprice would need substantial revenue to support that valuation...and we are far from the 50 bagger needed to reach this point. It may happen someday but I expect to wait a long, long time for this to occur.
Maddog
From Investopedia:
Each company must have a minimum of 1,250,000 publicly-traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more then 10% of the company. In addition, the regular bid price at time of listing must be $4, and there must be at least three market makers for the stock. However, a company may qualify under a closing price alternative of $3 or $2 if the company meets varying reequirements. Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360. Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.
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