I didn't even read through the proxy to see the discussion on this item, I immediately voted for it - I had said to myself for the past month or two that they needed to do a 1 for 5 or 1 for 10 reverse split.
1. 100 million shares outstanding is too much for a company this size
2. There is too much liquidity in the shares. This is why it is so difficult for the shares to move higher - there's just too many shares out there and always someone willing to sell a few shares.
3. Having the share price up around $10 will be beneficial in that it will attract investors who will not even consider investing in a $2 penny stock. Anything below $5 eliminates an entire class of investors.
4. Above $5 and $10 the shares will be more attractive and a potential investment for mutual funds that will not touch the shares at this price level.
Reverse splits are not always an indication of something bad, or a requirement to maintain a listing.
I purchased shares of another company that did a 1 for 10 reverse split about 8 months ago. The stock has doubled over the past 3 months.
Going forward, should sales and earnings pick up, and the share price goes higher, the company can always forward split the shares in the future.