Willy... you are on the spot with that An R/S is almost always the death of the incumbent SH in a penny stock. That looks like the case here from the 2016 R/S. I got in after that scarecrow, so I'm hoping that I'll see some results before the next R/S. But this is a speculative play. They may need cash to survive in 2018 and again in 2019 and we can expect another devastating R/S again.
There is ALWAYS a solid, rationale excuse for an R/S. To get listed, to clean up the financial statements for a buy-out, and so on. But the net effect is almost always the same... wiping out the equity of the incumbent SH as the PPS slides back down ... post R/S. I surprises me how so many traders do not see this risk. They think ... oh well, the $ per share doesn't change after an R/S. Then months later they realize they lost their shirt as the post R/S PPS drifts south 80%. Amazing!. The PR's so often scam the SH brain.