Wrong. The new share holders have already earned money. They have shorted the stock at around 8-10 cents before the reverse splitting before buying new shares.
That's what I am wondering too. It seems somebody knows something as shown below:
“If not the Rexista NDA filing, we believe the next catalyst is when partner Par launches the 5mg strength, as the 5mg Focalin XR dose represented a branded value of about $73 million for Novartis (NVS, Not Rated) in its annual 2014 sales, and it was about 10% of all Focalin XR sales,” the Brean Capital report noted.
It needs $5,000 a share for the ipo owner to get even!!!!