That IS the "trade" so why mess with FIRE!? There are PLENTY of OTC stocks that aren't diluting to the HIGH HEAVENS & wiping out shareholders. So no, not everyone making money!
That's NOT the way Reverse Splits work but, they DECIMATE LIVES! I understand that these are CAPITAL MARKETS but there's really no need to invest in this risk. The R/S is coming! And it will WIPE AWAY investors positions & capital... That's THE WAY the company can reload shares; so they can DILUTE sh's ALL OVER AGAIN!
And NOT everyone who buys penny stocks understands this or even realizes it until it is TOO LATE! Money LOST! There are MUCH BETTER fish in the sea... & management should WORK HARDER to be MORE creative, RESPECT their shareholders & find alternative sources of financing.