"Regulators" don't approve the uplisting, the SEC will approve the S-1 offering. The exchange will approve the uplisting if the company meets the requirements for listing.
The story here is uncompelling, really looks like they're just wanting a bucket of money that is wholly inadequate to do any of the things they "estimate" on that page I referenced, save make that lender in March a pretty penny and have a couple years of salaries left over. The offering price is proposed to be $7 for a unit consisting of a share and a free trading warrant (listed and trading separately), and that isn't etched in stone until the underwriter has offers/commitments from their clients to purchase the stock. Whatever the offering price is will be at a discount to the pre-split OTC price.
The stock and warrants will get sold for immediate profit while "longs" get access to their stock after a couple days due to the RS. Considering that everyone can see this company's plans and needs for future cash, I have doubts, myself. Also consider that the "insiders" will still control the vote after the offering, retail shareholders really won't have input into the company business for quite some time. That's also unattractive.
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