A reverse stock split is unlikely unless it is combined with a capital raise. A reverse split by itself will not solve either the cashflow or listing rules violation (10MM minimum equity value) problem. Further more, board members will not need to resign "to avoid a conflict of interest" if this was just about a reverse split.
The shares were delisted a few weeks ago and already trade on the OTC exchange. They will continue to trade until the POR becomes effective, which according to the filings, will be just around the end of July.
This is not just a temporary spike with no news. There was a court hearing today regarding the collateral motion and lots of document were posted in the days leading up to the hearing. In several of those documents the debtors provided information regarding ongoing negotiations with prospective partners / companies that could potentially buy them out. Some valuation numbers were also mentioned. Read the documents on primeclerk. This should really get interesting come June.
Any that amount does not even include the cash on hand, which was about $21M as of 3/31.
Why won't any of the existing big name collaborators simply buy them out and pay off the measly $15M debt? Even if those collaborators pay $1 per share, we're still talking less than $50M.
The company appealed the delisting. They will not be delisted until after a hearing. IMO likelihood of delisting is close to zero. I expect the BK process to be substantially done by the time Nasdaq comes around to making a decision on the appeal. This is nothing new. Same happened with many companies in the past. Ignorant People overreacting as usual.
Oh just shut it already and read the 8k filing. They appealed the delisting and the stock will not be delisted until they get a hearing. That will take another 3 months at least. Ignorant panic sellers in premarket will be kicking themselves come next week