Replies to post #432315 on Amarin Corp Plc (AMRN)

[rosemountbomber]

I didn't know or realize that the Nasdaq price deficiency is not lifted immediately after a RS:

A reverse stock split increases a company’s share price while reducing the number of outstanding shares. Reverse splits rarely achieve a lasting solution to the bid price deficiency for struggling companies, ultimately resulting in other deficiencies based on the company’s market value when the company’s stock price sinks to near pre-split levels. Therefore, Nasdaq will wait for the reverse split price to settle in the market before lifting the bid price deficiency.

https://news.bloomberglaw.com/us-law-week/nasdaq-delisting-threat-is-tricky-for-companies-trading-below-1

I guess that is why companies have to choose a large enough RS to make sure that when the stock price gets hammered after the RS that it doesn't fall back under a buck again.

[lizzy241]

JRoon. What are you smoking these days? You must be bored to come up with all these crazy scenarios.