REVERSE SPLIT POSSIBILITY
Absolutely there is a chance of a reverse split here after PureRomance takes control of the stock. That is most likely the case. There will be a company name change, a stock symbol change, and probably a reverse split, and any other change the company sees fit.
I know that a reverse split is associated with a decling stock price, but that is only with a bad stock, with a bad business model and no earnings. Pure Romance has a solid business model (over 10,000 sales consultants, 2006 $60 million Revenues). The stock should rise sharply instead. It would not be a negative event.
The reason for a split is because PureRomance does not want their stock selling at 1 or 2 pennies. This suggests a weak company. They would much prefer their stock selling at a dollar denomination, like $1 or $2 or $3. That makes the stock more appealing and makes the pool of potential investors larger, since more investors will be able to buy.
I know this is a long time away, but I am sure somewhere in their future plans, that PureRomance would like to get listed on NASDAQ or another higher exchange. A split would aid that goal.
A potential reverse split with Pure Romance is a positive, not a negative. Relax.
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