is this why they converted preferred to do a reverse split?
Am I correct, there is 19 million os, that is not a huge amount? So what does the reverse split accomplish, is it to get the price up to get on an exchange? and what do we need to be a buck?
It's not clear to me what they've accomplished at that time. They actually have 22 million OS now.
Below came from K8 a week ago:
"Following these conversions, the Company had a total of 22,118,399 shares of Common Stock issued and outstanding as of April 26, 2013."
A reverse split makes the company more attractive to potential buyers as holding a share price slightly over a nickel isn't very appealing. Reverse stock splits happen all the time in big and small companies. The value of your shares will not change and the whole purpose of a reverse split is to gain interest from new potential investors and thus helps long-term share holders in the long term.
To answer your specific question, to get to a buck the company would need to execute roughly a 1 to 13 split thereby transforming our share price from .0785 to 1.02. Assuming my math is right. Someone correct me if it's not.
As I said, reverse splits happen to big and small companies all the time. Nothing to worry about.
Agreed with small and big companies reverse split all the time. But if you look at history of these companies, losers tend to have a pattern and that is they reverse split whenever they have a chance. Look at CTIC it keeps on losing so it keeps on reversing. I understand LJPC had done a 1 to 100 reverse split, I hope they will not continue that kind of mentality. I invested a significant amount here and for them to avoid that is by achieving milestones and goals every step of the Phase 1 and 2 trials.
Say you have 1000 shares at.10 You then have 10 shares with a 100-1 reverse split at $1.00/share.
Are you better off if the drug gets approved then when you had 1,000 shares? I don't think so.
I've never seen reverse splits of that magnitude work out, in fact as soon as the split occurred the stock dropped. Happened to me three times already.
Not a happy camper. LJPC, just wait until the drug gets approved and the stock will be purchased no matter what it's at now.