You must have missed some pretty significant news regarding Caveat Emptor stocks lately, with regard to, "Its not stopping anyone from trading."
About 7 weeks ago Etrade announced a complete ban on trading Caveat Emptor stocks and followed through making them sell or hold only. TD announced the same beginning this year and could be enacted literally any day now, as many other platforms already have such bans. Switching from CE to current would mean that multiple brokers would go from only allowing sells to allowing buys. It shouldn't be particularly difficult to imagine the effect that would have as a standalone situation, let alone if combined with mergers, acquisitions, or other significant corporate actions.
Also with respect to "RMs happen all the time regardless of OTC status." Cool but BLLB does not trade on the OTC, so that is another miss. As a Caveat Emptor stock it is on the grey market literally in the midst of an application process in the hopes of becoming classified as an OTC Market stock. The OTC Market is the lowest market and BLLB is not there yet, so suggesting that a company would willingly choose to merge into a grey market stock is a bit silly. Can you provide some examples of private companies that chose to reverse merge into a publicly traded company that was not even on the OTC Market or higher? It would be a horrible idea to do so and that's why they would generally not occur.
That would require putting up money to merge into a ticker that is at high risk of being entirely de-listed from the stock market, whilst choosing not to merge into options that come without that risk. It would make little sense to do that while there are many other options that are in full compliance and therefore, lower risk of revocation. Reverse merging into a Caveat Emptor stock would be like playing Russian roulette, for literally no reason other than wishing to put your own funds at risk, so no part of your statement is sensible.
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