Unless an investor is very sure that the split makes sense for the company, you might want to put on the running shoes.
To me a reverse split is rarely good. Should be done IMO only to save the company from being delisted from an exchange. If a company does it because there are too many shares O/S just shows the company was a diluting company in the first place.
There aren't any known reasons why they had a 1:300 share R/S.Not even a weeks notice to shareholders (1 day) via a PR.
Hoping for a good reason doesn't fare well.
No evidence anything is the works.Some reasons that make sense to me:
1)Low prices raise negative emotions in investors. Could be to protect it's brand's image by avoiding the sub penny stock label, since there is a negative stigma to sub penny stocks traded only over the counter (OTC). Also could be same reason for the name change, new image.
2)may just be an attempt to extend the life of a slipping stock.
3)Now the company can issue new shares @.50 vs .002. Next corporate action should be to increase the authorized.
Just the way it is in Pennyland.
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