The only direct consequence might be a cashing out of a small stockholder. Otherwise, it's merely a paper transaction, an exchange of one piece of paper for another, each with the same value.
All this handwringing about companies who fail after reverse splits is smoke. They would have failed anyway.
"In fact, as we shall show reverse splits provide a decidedly negative signal to the market in that they are a confirmation of poor performance. This is particularly the case when they are enacted for the purpose of maintaining a listing on an exchange because the firm doing the reverse split has not been able to meet the listing requirements."
"Since it's done for purely cosmetic reasons and doesn't change a company's finances, the market knows it and the company gets penalized. Most companies end up seeing their stock prices continue to slide," said Pamela Peterson, a finance professor at Florida State University and co-author of a 1992 research report, "A further understanding of stock distribution: The case of reverse stock splits."
This one isn't relevant to PPHM since it doesn't have significant earnings, but it's an important paper from the perspective of post R/S performance of companies that do:
Market Data 
Markets 
AI
