Why your stock was allowed to trade between June 2 (approval date of reverse split by your board of directors) and June 22 (date of disclosure of this event). Thank you very much.
I was thinking the same thing. Decision had already been made but no mention of it on the CC. Just terrible!
Timing of this move couldn't be worse. Stock was already on the ropes. Rookie management decision/mistake. Probably only realize that now. Too late. Shareholders pick up the tab for their training lesson.
This was not necessary except if it is a prelude to a capital raise. They only have 21 million shares outstanding and are going to create a very illiquid stock with only 4.2 million shares. This is inconsistent with generating institutional interest. If they really believe that the performance will be there, the stock would appreciate without the need for any gimmicks.
Since it is only 1X projected 2017 revenue. Then, of course, a capital raise at $5 or $6 or whatever. Can't sell stock and then immediately pull a reverse split on the investor. So, this comes first.
No reaction whatsoever by the stock price. But they can't keep doing this, a growth company is supposed to grow. The last two sequential quarterly declines in revenues are dramatic and unacceptable. They will only be given so many chances and then the stock will implode.
Based on the low volume, I don't think that there is a lot of new money being committed to this. More like a wait and see, hoping for evidence that their story is actually happening.
When there is no currency, no viable way to raise capital, there is only a short term scramble. Short term funds will not cover long term plans. We've all seen this before; this is over.