Reverse splits are seldom the real issue.
It's the financial situation leading up to the reason for a reverse split that is the root cause for concern.
Doing a reverse split to actually get off the OTC and onto Nasdaq is almost always good for an existing shareholder. The micro-second after the reverse split, the market capital of their investment hasn't changed. They just have fewer shares, each of which is worth more. And after the split, the market for their shares has increased, and they will likely have better liquidity and exposure for their company.
The most common reason for reverse splits having a bad reputation (on the OTC) is the root cause that often proceeds it. DILUTION.
Unfortunately for TAUG investors, TAUG has diluted big time. Whether there's an upcoming reverse split is kind of immaterial.
If an investor invested in TAUG several years ago, their claim on the companies distribution has been cut in half, or worse. So if they owned 1/1000th of the company when they bought, their SHARE is now 1/2000 or perhaps even 1/4000. The percent of the company they own now has been significantly eroded (i.e. diluted).
From an overall market perspective, the big downside of reverse splits is that they enable serial failures.
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