Replies to post #24445 on iBrands Corp. (IBRC)

[reader3]

In theory, yes. But in actuality, on the pink sheets, reverse splits are usually used to create room for additional dilution after the stock is maxed out. Thus existing shareholders lose their percentage of the company, and make no money. Since that's what usually happens, pink sheet shareholders tend to sell in a panic at the slightest whiff of a RS. If a pink sheet company with revenue, and without dilution, reverse splits, and also reduces the authorized, and makes it VERY clear that there won't be ongoing dilution, but that the RS is being done to uplift to the big boards or the OTCBB, it can be beneficial, but that's a very rare occurrence.

[malvern]

Not in penny land it reduces the Nunber of shares and typically is followed by massive dilution such as with convertible debt. Meaning you often end up with a similar amount of shares in corculation acter dilution which of course means a fraction of the equity