Jumpin, >> has not gone further down on RS news <<
The fact that the post-RS share price should be up in the $6.50 range is good from the standpoint of uplisting to a Nasdaq exchange, since I think the minimum share price needed is in the $2-3 range (see article below, though somewhat dated). It sounds like they don't plan to uplist RespireRx to the Nasdaq immediately, but eventual uplisting it is part of the rationale for the R/S.
But a post-RS share price that high (6.50) means there's plenty of room to fall in the period following the R/S and still qualify for an uplisting (could fall by 50% and still qualify). So that's one reason to be somewhat leery of buying pre-RS. Another is that at 6.50 the shorts might see an opportunity to short that they wouldn't see if the post-RS was lower at say 1.50 (?)
But how the stock reacts in the post-RS period will probably depend mainly on the strength of the RD Phase 2 data and how much investor anticipation there is over that and the later Dronabinol results. Right now there doesn't seem to be much buzz at all over RespireRx, and that needs to change. Management needs to get the stock more prominently on radar screens first prior to the Phase 2 data release.
One technique they might try is to issue a few press releases touting that RespireRx has a new drug that could have saved the lives of Prince, Michael Jackson, and Joan Rivers. This could be very effective in raising investor awareness of the stock. Trying to resurrect a forgotten microcap requires getting the 'hype machine' going, at least to some extent.
>>> NASDAQ Capital Markets Lowers Initial Listing Requirements to Benefit SmallCap Stock Listings
The NASDAQ Stock Market received approval from the SEC on April 18, 2012 to lower its initial listing requirements for its Capital Markets listing tier. The stated purposes of the changes were to allow NASDAQ to compete with the NYSE’s AMEX listing and to benefit Smallcap market entrants. We summarize the new standards below.
The existing rules required that a company seeking to list its securities on NASDAQ must comply with a host of quantitative and qualitative initial listing requirements, including, among others, a $4.00 per share minimum bid price requirement. Under the new rules, a company that does not meet the $4.00 per share minimum bid price requirement may still list its securities on NASDAQ if it meets all other initial listing requirements and:
• evidences the $3.00 minimum bid price and qualifies under the Equity or Net Income initial listing standards, or
• evidences the $2.00 minimum bid price and qualifies under the Market Value of Listed Securities initial listing standard.
Under the Equity Standard, a company must show stockholders’ equity of at least $5 million, market value of publicly held shares of at least $15 million and two-year operating history.
Under Net Income Standard, a company must show net income from continuing operations of $750,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years, stockholders’ equity of at least $4 million and market value of publicly held shares of at least $5 million.
Under the Market Value of Listed Securities Standard, a company must show market value of listed securities of at least $50 million (current publicly traded companies must meet this requirement and the price requirement for 90 consecutive trading days prior to applying for listing if qualifying to list only under the market value of listed securities standard), stockholders’ equity of at least $4 million and market value of publicly held shares of at least $15 million.
In order to avail itself of the alternative minimum initial bid price listing standard, the company must demonstrate that it has net tangible assets in excess of $2 million if the company has been in continuous operation for at least three years, or of $5 million if it has been in continuous operation less than three years. <<<
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