Reverse splits are never good for stock prices. Although i lost a lot money and sold out at .77 a week ago, I'm still interested in how this plays out. SIRI was once in danger of delisting but was granted a lifeline on the grounds that it was being so heavily traded and was near $1, despite passing the deadline. I sorry to say, can't see a rationale for EMMS, though. Pink sheets are more often than not a death sentence.
while I agree that any delisting is not a positive, the pinks have become pretty standard right now...there are fewer and fewer companies trading on the OTC bb right now. In fact, the old OTCBB is fading away with more stocks migrated to the OTCQX and OTCQB, previously known as the pinksheets. Its a big blend now.
As someone stated on another thread, Emmis would only have to state the intention of performing a reverse split, dependent on a vote at the next shareholders meeting, then act to deal with the debt refinancing or squaring up with the preferred problem. If the price then got back in compliance in the mean time, there wouldn't be any reason to carry out the split. -Sirius was given the extension because the FCC gave them such a hassle over merging with XM, it held the shares down for a long time. They were under $1 for a very long time, so the rules are flexible when the SEC wants them to be.