There are currently 1.2 billion potential shares outstanding, including the 700 million common underlying the convertible preferreds, the options and warrants, and the common out now.
After the split there will be 63 million shares potentially outstanding. That is a much more reasonable number of shares. It looks better to potential investors and should make it easier for the price to rise. Secondly, the market price should be about $4.5 initially. No longer will the stock be a penny stock. Lastly, those who had 100,000 or 200,000 shares pre-split will now have 3300 to 6600 shares. That is very few and will tempt the people to buy more.
In sum, having a reasonably priced, non-penny stock with fewer shares in a person's hand will be good psychologically and will provide a better base to move up. At least that's how it looks to me.
i understand why they did the split, I dont agree with 1-30. that will make this well over $4 a share and they are not even in phase II. there are alot of bio stocks less than $4 a share and have completed phase III. for someone to dish out $4 a share and waite 3-5 years for fda approval means its dead money for a long time. I sold half my position today becouse of this, to much time to take a turn south. I hope I am wrong but did sell half. will buy back on any dips. a 1-10 split would have been enough and kept investers willing to tie up money for the long term now you will get a fraction of the shares.